Startup Layoffs News Today

The layoffs will impact about 10 percent of the total workforce in the marketing and sales department of the company.

Paytm layoffs have already begun two weeks ago and come as Paytms Payment Bank has been barred by RBI from conducting several businesses.

Rationale behind the decision to part ways with Vohra are “misalignment of priorities” and “unproductive working relationship

The impacted employees are being offered two months salaries as compensation, along with the variable payment for FY24, it added in a statement.

The development comes months after Moneycontrol reported that the Bengaluru-based unicorn had seen its revenues stagnate while its monthly cash burn remained unchanged.

During the ongoing funding winter, several internet majors such as Paytm, Policybazaar parent PB Fintech, Flipkart failedd to control expenses in FY23. Horizontal omnichannel retailers such as Nykaa, Mamaearth parent Honasa Consumer and FirstCry also saw both employee expenses and marketing costs rise anywhere between 23% to 55% during FY23.

The Walmart-owned e-commerce giant recently let go of 1,000 employees, as part of its annual performance review exercise. The prolonged funding winter saw major Indian startups handing out pink slips to their employees in 2023, as companies attempt to realign cost structures.

The move to cut jobs comes at a time when Flipkart has frozen fresh hiring for at least 6-7 months to lower costs.

It had let go of 380 employees in January 2023 and even shut its meat marketplace in a bid to lower costs.

The unicorn, which also counts Tata Digital as an investor, is realigning its business strategy to transition into an offline-heavy gym company, departing from its previous identity as a tech-enabled fitness startup.