Meesho an E-com platform has decided to terminate the services of aits 15% employees which may come to around 250 citing the reason of misjudgment in hiring.
In a statement, it is said, all those affected by the job cuts will be provided a separation package that includes a one-time severance payment of 2.5 to nine months (depending on tenor and designation), continued insurance benefits, job placement support and accelerated vesting of ESOPs.
Severance package for laid off employees includes– Full pay for notice period,
Additional one month pay, along with a tenure-based payment of 15 days pay for every completed year of service, rounded up to the nearest year, family insurance coverage till March 31, 2024. Including relaxing ESOP vesting norms so the departing employees remain shareholders in the company.
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In an email dated May 5, co-founder and CEO Vidit Aatrey informed the company’s staff about the layoff. “As leaders, we made judgement errors in over-hiring ahead of the curve. At the same time, we could have run our org structure in a more effective and lean manner overall,” Aatrey said in his email.
Informing about the latest round of layoffs, Aatrey told staff that the company’s spans and layers were inflated, and this could have unintended consequences on its speed to execute. “While we are confident that Meesho business will stay strong, the economic reality is here to stay. We are now faced with the hard truth of aligning our people costs with the new projections for our business. We should have done better here,” he added.
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