Meesho fires 251 employees in third round of layoffs

Meesho on Friday announced that it has let go of 251 employees in a fresh round of job cuts. Last year, Meesho had let go off about 150 employees. This comes at a time when startups are struggling to raise funds. The period has been labeled as 'funding winter'. To be able to survive this winter, many startups have cut jobs to reduce costs.

A Meesho spokesperson said, "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 organizational structure to achieve sustained profitability."

We are committed to ensuring all those impacted have our full support and will be provided a separation package that includes a one-time severance payment of 2.5 to 9 months (depending on tenor and designation), continued insurance benefits, job placement support and accelerated vesting of ESOPs. We remain grateful for their contributions in building Meesho," the spokesperson added. 

Last week, Jefferies released a report on the seven-year-old e-commerce startup. The report said that the company has been driving a GMV of $4.5 billion in 2022, a nine-fold growth over a year. The report also added that the company has been undertaking aggressive means of cutting costs and reducing its cash burn.

This comes after co-founder Vidit Atrey said that the company is working on becoming Ebitda-positive by mid-2023 before going public. According to Tracxn, Meesho is valued at $4.9 billion. It raised a Series F funding round led by Fidelity Management and Eduardo Saverin’s B Capital Group.