Meesho Cuts 15% Of Workforce, 251 Employees Laid Off

Meesho, an e-commerce unicorn, has announced its second wave of layoffs in less than a year which would result in the termination of 251 workers or around 15% of its workforce. The co-founders sent an email to the employees informing about the decision.

"We have taken a 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," a spokesporson from meesho said in a statement.

In a note to staff, Meesho co-founder and CEO Vidit Aatrey told that the business made a 'judgement error' and overhired ahead of time, "At the same time, we could have run our org structure in a more effective and lean manner overall. Our spans and layers were inflated, and this could have unintended consequences on our speed to execute".

"I want to reiterate that the decision around who is impacted has nothing to do with performance, and only to do with our business reality. That we are losing the best, hard-working talent as a result of this decision is not lost on me," Aatrey told employees.

According to the email, employees will get their full salary during the notice period, an additional month, and a tenure-based payout of 15 days of compensation for every year of service that has been completed, rounded up to the next full year. The business announced that it would also keep providing family insurance coverage through March 31, 2024. Additionally, the ESOP vesting rules will be flexible so that departing employees can still own stock in the company.

.