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New-age consumer firms are planning additional layoffs to cut costs as 2023 starts on a cautious note, a report by The Economic Times (ET) said. Last week, Dunzo, a Reliance-backed quick delivery startup, laid off 3 per cent of its employees to cut costs.
“Any decision that impacts people is tough, and always our last option. Last week, we had to part ways with 3 per cent of our team strength,” Dunzo co-founder and CEO Kabeer Biswas told ET.
While the exact number of those laid off is yet to be revealed, people in the know say the company axed around 60-80 employees.
According to the report, MohallaTech is also in talks to finalise another round of layoffs in the coming weeks, likely to be bigger than its previous layoff of 100 employees. Rebel Foods, which has brands like Behrouz Biryani and Oven Story, has also reportedly cut its headcount.
MohallaTech, the parent company of ShareChat, might lay off 200 people.
“They (company leadership) are finalising the details and are likely to close it this month. Costs have to be optimised across possible avenues. It’s very evident all startups are doing it having realised what’s happening in the market,” another person aware of the matter told ET.
Just two weeks into 2023, companies like Ola, Cashfree and Moglix have fired employees. Amazon India is also planning to lay off around 1,000 people.
Experts said the primary reason for this is the fall in funding. Venture funding has fallen 30 per cent in 2022 to $24 billion after a record fundraising in 2021.
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