Ecomm firm Meesho lays off 150 employees to revamp grocery business
Category: #retail  By Pankaj Singh  Date: 2022-04-13
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Ecomm firm Meesho lays off 150 employees to revamp grocery business

Meesho, the Facebook-e-commerce firm, has reportedly laid off around 150 employees from its grocery division, which was revamped and rebranded as Meesho Superstore a week ago.

The Bengaluru-based company has planned to consolidate its grocery division into the primary shopping app in this revamp which resulted in some redundancies.

Meesho has affirmed the layoffs, focusing that the affected employees have received outplacement assistance as well as severance packages to secure new avenues outside the organization.

Currently, the company has a workforce of nearly 2,000 employees and it has no plans to downsize further. It revealed that the layoffs had no impact on its core business of Meesho marketplace, where it continues to employ and thrive talent.

According to credible sources, nearly 400 employees were affected by the downsizing of Meesho. However, the e-commerce firm has refuted this claim.

Furthermore, the sources also revealed that the company plans to shift its grocery business to get away from its dependence on city-level executives. Moreover, the layoffs were performed to curb Meesho’s cash burn.

Meesho, which aims to compete against Flipkart and Amazon, joins a host of consumer tech startups like Unacademy, Trell, Shopee, and Lido Learning that have recently sacked their employees. This integration will enable the 100 million users of the company to access more than 87 million active product listings through 36 categories on one platform.

Meesho initiated a trial program in Karnataka to make online grocery shopping more affordable for first-time users. It has expanded its grocery business to six states in around nine months: Telangana, Maharashtra, Karnataka, Andhra Pradesh, Madhya Pradesh, and Gujarat.

There has been a reasonable rise in Meesho’s direct sales share. It now obtains nearly 75% of its revenue from its clients using the platform, with the remaining 25% of revenue coming from resellers.

Source credit:

https://www.businessinsider.in/business/startups/news/facebook-backed-meesho-lays-off-150-employees-in-india/articleshow/90791826.cms



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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