B2B e-commerce unicorn Udaan has announced the second round of layoffs. Citing macroeconomic conditions, the company announced its plan at a town hall held on Thursday.
According to sources who spoke to businessline on the condition of annoymity, 300-350 payrolled employees across functions and a number of contractual staff will be impacted by these layoffs.
This round of layoffs will reportedly cause 1,000 job losses, according to Morning Context, which was the first to report his development. Udaan removed 180 employees in June 2022.
On the layoffs,an Udaan spokesperson said, “As Udaan moves forward in its journey to becoming a profitable company, the efficiency enhancement drive and the evolution in the business model have created some redundancies in the system, with some roles no longer required.
“As a responsible organisation, we are working towards providing all requisite support to the impacted employees. We believe in efficiency as a driver of profitable growth and will continue to refine our cost structures and models. In this direction, we have taken numerous steps, with enhanced digital capabilities, to achieve efficiency and scale, become more agile and remain competitive in the marketplace. These initiatives, executed by our strong leadership team, have not only helped us achieve positive unit economics but also reduced inefficiency in the system, with huge cost benefits, which is key to building a sustainable business,” she added
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Late last month, Udaan raised $120 million in convertible notes and debt from existing shareholders and bondholders among others. According to an internal email sent by the company’s Chief Financial Officer (CFO) Aditya Pande, the company is also aiming to become IPO-ready in 12-18 months.
In the same email, Pande said that he has improved its unit economics by nearly 1,000 basis points (bps) and Udaan’s cash burn has reduced by over 60 per cent. Further, the company’s monthly buyer repeat rates have also improved by over 500 bps in the last two quarters.