Meesho Trims Workforce by 15% in Strategic Move to Optimize Operations

Meesho Trims Workforce by 15% in Strategic Move to Optimize Operations

Image generated using AI.

SoftBank-backed Indian e-commerce platform Meesho lays off 251 employees amid a restructuring process to streamline its operations and focus on core business areas.

Meesho Trims Workforce by 15% in Strategic Move to Optimize Operations

Image generated using AI.

Table of contents

Indian e-commerce firm Meesho, backed by SoftBank, recently announced that it has trimmed 15% of its workforce, laying off 251 employees[1]. The company cited over-hiring as the primary reason behind the decision, which was part of a broader restructuring process aimed at streamlining operations and focusing on core business areas[2].

Meesho, founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, is a social commerce platform that enables small businesses and individuals to start their online stores via social channels like WhatsApp and Facebook[1]. The company has experienced rapid growth in recent years and has attracted significant investment from major investors, including SoftBank, which led a $300 million funding round in the company in April 2021[3].

Despite its impressive growth and strong financial backing, Meesho has faced challenges in scaling its operations, leading to the recent decision to cut jobs[2]. According to reports, the layoffs affected multiple departments, including engineering, marketing, and business development[4]. The company has stated that it is committed to supporting and assisting the impacted employees, including offering severance packages and outplacement services[2].

In a statement, Meesho emphasized the importance of optimizing its workforce to ensure the company's long-term success, stating, "As we build Meesho for the next decade, we need to create an organization that is nimble, agile, and built on strong foundations of ownership and efficiency"[2]. This move is considered a strategic decision to help the company focus on its core business areas and allocate resources effectively.

The decision to lay off employees is not unique to Meesho. Several other Indian startups have recently undergone similar workforce reductions in response to changing market conditions and the need to optimize operations[4]. These layoffs highlight the challenges rapidly growing startups face in managing their workforce and scaling operations effectively.

Meesho's decision to trim its workforce has attracted significant attention from industry experts and investors, who closely watch how the company navigates its restructuring process. As the e-commerce platform continues to evolve and streamline its operations, it remains to be seen how the layoffs will impact its overall performance and ability to compete in the fast-growing Indian e-commerce market.

In conclusion, Meesho's recent decision to lay off 251 employees, or 15% of its workforce, can be seen as a strategic move to optimize the company's operations and focus on its core business areas. The SoftBank-backed e-commerce platform is not alone in facing the challenges of scaling operations and managing its workforce. Several other Indian startups have also undergone similar workforce reductions in recent times. As Meesho continues to adapt and streamline its operations, it will be interesting to see how it performs in the increasingly competitive Indian e-commerce space.


SoftBank-backed Meesho trims 15% workforce
SoftBank-backed e-commerce platform Meesho has sacked 15% of its total workforce or nearly 251 employees, joining a long list of startups that have had to ...…
E-commerce firm Meesho lays off 251 employees, cites ‘over-hiring’: Report
Those terminated account for 15% of the company’s existing workforce, the report said.
E-commerce firm Meesho lays off 251 employees
Meesho Founder and CEO Vidit Aatrey in an email to employees informed about the decision and announced that all the affected employees will get one month extra severance pay beyond the notice period as well as ESOPs irrespective of the period they have been with the company.
India’s Meesho cuts 251 jobs
Meesho has cut 15% of its workforce, or 251 roles, as the Indian social commerce startup pares its expenses to improve its financial health and confront the “economic reality.” This is the second round of job cuts at Meesho, which eliminated about 150 roles a year ago. The Bengaluru-headquartered st…
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