B2B e-commerce unicorn Moglix has laid off 2-3 per cent of its workforce, joining other tech start-ups that have laid off employees due to fund crunch recently.
However, the company said these employees were fired based on their annual performance reviews.
“We have hired over 700 people this year and continue to expand with a target to hire over 300 people for 2023. We keep a watch out for low performers and continue to automate tasks, for which annually 2-3 per cent people can be impacted.”
Related Stories
Amazon to slash more than 18,000 jobs in escalation of cuts
Though the prospect of layoffs has loomed over Amazon for months — the company has acknowledged that it hired too many people during the pandemic — the increasing total suggests the company’s outlook has darkenedMoglix is reportedly in talks to raise $100-$150 million.
Founded in 2015 by Rahul Garg, the Tiger Global-backed company became a unicorn in May 2021.
Some of the other key investors in the company are—Ratan Tata, Sequoia Capital, Venture Highway, and Falcon Edge.
According to the company, it serves 5 million MSMEs and over 700 global enterprises to digitise their procurement and supply chain at more than 3,000 plants across auto, pharma, chemical, infrastructure, metals and mining, oil & gas, FMCG, etc.
The start-up ecosystem globally is undergoing a funding winter, which has led many start-ups to cut costs, focus on profitability, and shut down business verticals in an attempt to justify their 2021 valuations.
As a result, nearly 18,000 employees were laid off by major start-ups such as BYJU’S, Unacademy, Vedantu, OYO, and Zomato last year.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.