E-commerce firm Meesho lost nearly 15% of its employees on Friday, citing an organizational restructuring as the company remains profitable in a declining startup funding environment.
Meesho said layoffs affected 251 employees although affected employees will be given a separation package that includes 2.5 to 9 months of one-time separation payments, continued insurance benefits, job recruitment support and accelerated assignment of ESOPs.
This is the third time of layoff at a Bengaluru-based startup. In August last year, the e-commerce firm laid off 300 employees after closing its grocery business Farmiso and merging it into Meesho’s core app.
In an email to employees on Friday, Meesho CEO and co-founder Vidit Aatrey said the firm has grown 10-fold from 2020 to 2022, backed by COVID tailwinds and aggressive investments. However, while Meesho has followed its aggressive push, the macro climate has changed undeniably and significantly, he said.
