Meesho lays off 150 employees in restructuring
E-commerce business Meesho has restructured its business and will integrate its grocery vertical into its main shopping app. As part of this, the business has laid off 150 employees.
Meesho has rebranded its grocery and everyday items business from Farmiso to Meesho Superstore to offer a more comprehensive shopping solution on its app and streamline its business, ET Tech reported. Sources close to the business told the Economic Times that Meesho’s streamlining of operations will affect 400 company employees but maintains that there will be only 150 redundancies.
“About 150 full time employees will be impacted by the restructuring of Meesho Superstore which is aimed at bringing in efficiencies,” a spokesperson for Meesho told the Economic Times. “The company is offering severance packages and outplacement assistance to help those impacted secure new opportunities outside the company.”
Meesho will continue to expand its marketplace offering and will continue to expand its employee base for that segment of the business, Meesho wrote in a blog post on its website. Following the streamlining, Meesho’s grocery services will be expanded from six to 12 Indian cities by the end of 2022.
Another reason for Meesho’s pruning if its workforce is the business’ high cash burn amid strong competition. Meesho is also looking to raise new capital after a number of lucrative funding rounds.
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