Wuhan-born Coronavirus is not just taking a toll on physical independence but it making people financially handicapped. As the economy worldwide sees a sharp decline, small businesses and even market giants are looking out solutions by cutting employee cost.
The latest to fall victim of declining business is social commerce startup Meesho. The startup has laid off more than 200 employees of its over 700-strong workforce, according to three people familiar with the matter.
Meesho had to take this step in order to survive in the declining global market.
“They have fired a lot of key account managers who are responsible for onboarding vendors,” said one of the people cited above, requesting anonymity. “Since Meesho wants to control the speed of signing up of vendors, they will instead convert the fixed cost of salaries to variable by outsourcing the vendor acquisition.”
As a survival strategy, Meesho, which has around 150 key account managers, is laying off employees in other departments, too, including customer support, operations and marketing. Pay cutting from salaries of employees and senior-most team members will also see a significant decline, the very basic strategy of survival in testing times.
As India continues to be in a 21-day lockdown due to the novel coronavirus pandemic, sale of non-essential items (both online and offline) have taken a huge hit leading to almost no business for such platforms. Social commerce firms such as Meesho along with e-commerce platforms such as Amazon and Flipkart have been a direct victim of this situation.
Founded by Aatrey and Sanjeev Barnwal over four years ago, Meesho has been a leader in the Indian social commerce space. It last raised $100 million from Naspers in August. Facebook also put in $25 million in the round.
Job Pandemic: Special series by `NYOOOZ` to track major employment-related updates during the Coronavirus crisis. The purpose is to keep you updated with the employment/jobs market and organizational decisions during the time of global economic crisis.
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