It looks like the e-commerce businesses are not having the right time. To overcome declining sales and rising expenses, giants like Amazon are continuously laying off employees. At the same time, small companies have also started adopting this easiest way of reducing expenses. The latest news comes from homegrown e-commerce brands- Meesho and Shopify. Meesho has reportedly layoff around 250 employees, while Shopify is going to lay off 20 per cent of its workforce in the coming time.
Meesho will send off employees by giving ESOPs
E-commerce company Meesho has laid off 15 per cent of its workforce in a bid to cut costs and boost profits. Vidit Atre, founder and CEO of Meesho, sent an email to the employees informing them that the employees who are being retrenched will get one month's additional pay along with the notice period. Apart from this, they will also get the benefit of ESOPs. Under ESOPs, companies give some shares to their employees. Atre said that the company grew 10 times from 2020 to 2022, although the challenges have increased rapidly in the past. The company is giving special emphasis on keeping the cost under control.
Shopify fired 20% of its employees
Apart from Meesho, e-commerce platform Shopify has announced to lay off 20 per cent of its employees. Under this, more than 2,000 people in the company will have to lose their jobs. The company also announced that the American multinational corporation Flexport will buy Shopify Logistics. Shopify will pay additional wages to affected employees. The company laid off 10 per cent of its employees last year as well. Under which 1000 employees were laid off. Please tell that in 2016, Shopify had only 1900 employees, whose number had crossed 10000 by 2021.
