Funding to downsizing: Euler Motors cuts jobs despite $60 Mn raise
Euler Motors, a manufacturer of electric vehicles (EVs), has implemented a restructuring effort resulting in a layoff of 10% of its employees, six months after raising $60 million in its Series C funding round.
“We are restructuring our company to better deliver to customers as well as to investor expectations of greater efficiency in the context of changing global circumstances,” said a company spokesperson, according to Inc 42.
The spokesperson also stated that due to the restructuring decision, Euler Motors had to let go of around 10% of its employees from various departments throughout the organisation, including many who have made significant contributions to the company's growth and success.
“Our decision to restructure, however, meant that we had to part with approximately 10% of our employees from across the organisation – many of whom have made invaluable contributions to our growth and success,” the spokesperson said.
The startup shared that it has provided "appropriate" severance packages to the employees who were laid off. Euler Motors, as per its LinkedIn page, has a workforce of over 500 employees. However, an Inc42 source indicated that the number of affected employees is estimated to be around 180-200.
This development occurs at a time when the Indian startup ecosystem has witnessed over 24,000 job cuts since last year, as a result of global macroeconomic uncertainties and a challenging funding environment.
Nevertheless, in the electric vehicle (EV) industry, layoffs have been relatively uncommon due to growing adoption and significant investments from investors. However, Euler Motors is the second EV startup to report layoffs, following Bounce which laid off approximately 3%-4% of its total workforce in January this year.