Voonik rolls out major cost cutting measures, employees to loose salary for three months

The fashion e-commerce site Voonik has informed 200 members of its workforce that they will have to forego three months’ salary as the business commences a swathe of cost cutting activities.

Voonik is rolling out cost cutting activities in its quest for profitability - Voonik- Facebook

Voonik currently has a total workforce of 350 people and, on November 13, it was decided in a company meeting that 200 of their staff would not receive a salary for the next three months. Staff will be given the option to resign from the company and be given a month’s salary as compensation but, if they stay, they will effectively have to work for free for several months, although Voonik has promised to pay employees back later.

Not all of the company will be affected by this decision as the operations team have not yet been told that they need to forego any of their salary. However, the customer support and product development departments are included and will not be paid for the three month period. Voonik had recently hired a large number of highly paid executives and it is believed that many of these senior level executives will resign in the coming days as the company cannot sustain their high salaries.

The business’ CEO and Co-Founder, Sujayath Ali, announced the company’s decision on Monday and said: “Voonik is currently one or two months away from EBITDA [earnings before interest, taxes, depreciation, and amortisation] profitability. One of the measures is restructuring certain teams… As part of this exercise, we have requested these team members to self-select to being part of our last leg of [the] journey towards profitability, which includes deference of salary if required. We have done this exercise in the past as well and we always have paid back the deferred salary.”

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