E-commerce firm Udaan has laid off about 10% of its total workforce, as the Bengaluru-based company targets profitability. According to the company’s statement, the layoff has taken place across multiple department functions.
With the latest decision, Udaan has joined the list of tech companies in India and abroad like Byju’s, WazirX, EPAM, Meta, Snap and Twitter, who have laid off people across department functions in a move to drive cost efficiency.
“As we move forward in our journey towards making Udaan 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 necessary support to the impacted employees,” said the company’s spokesperson.
Udaan would be laying off 300 employees out of the workforce of 3,000. Some of the employees said that they were informed about the layoff on Friday morning and informed that the human resource department will reach out to them with the paperwork, india.com reported.
It has been a harsh few years for the unicorn, who had raised $585 million from investors in October 2019 and rose to become a unicorn entity. Yet the coronavirus severely disrupted its business model, with the firm losing 60% of its business due to the lockdown.
Since then, Udaan has made significant investments to build a tech-led and sustainable business.
“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,” the company added.
It remains to be seen how the firm will manage its growth in light of recent events, as it also plans to launch its initial public offering (IPO) in the next 12-18 months.