On Friday, Meesho made public its latest round of personnel reductions, stating that the company has terminated the employment of 251 workers. About 150 people were let go from Meesho’s payroll in the prior year. This comes at a time when it is difficult for new businesses to secure financial backing. This time of year has been given the moniker “funding winter.” This winter, many new businesses have had to cut prices and workers in order to maintain their viability.
A spokeswoman for Meesho stated, “We have taken the difficult decision to part ways with 251 Meeshoites constituting 15% of the employee base, as we look to work with a leaner organisational structure to achieve sustained profitability.” The statement was made by the spokesperson for Meesho.
We are committed to ensuring that all people who are impacted have our full support and will be provided with a separation package that includes a one-time severance payment of between 2.5 and 9 months (depending on tenor and designation), continuous insurance benefits, job placement support, and accelerated vesting of ESOPs. In addition, we will provide a severance package that includes a severance payment of between 2.5 and 9 months (depending on tenor and designation). We will always be thankful to them for the efforts they made towards the development of Meesho,” the statement stated.
A report on the e-commerce startup that has been operating for seven years was published by Jefferies last week. According to the report, the company is expected to generate a GMV of $4.5 billion in 2022, representing a nine-fold growth over the course of one year. The report also included the information that the company has been actively working to reduce its expenditures and its cash outflow in recent months.
This comes as a result of the fact that the company’s co-founder Vidit Atrey recently stated that the business plans to become Ebitda-positive by the middle of 2023 before going public. Meesho has an estimated value of $4.9 billion, as reported by Tracxn. It successfully completed a Series F investment round with Fidelity Management and B Capital Group serving as the lead investors.
