The e-commerce company Mensa Brands has laid off a minimum of 200 employees all over divisions. India Lifestyle Network – ILN has been the most affected, said a report. The company has been founded by ex-Myntra CEO Ananth Narayanan.
The layoff session has been introduced by Mensa Brands due to a slowdown in the business. A report says that 25% of employees will lose their jobs. The company has a total strength of 750-800 employees and there are rumors that the layoff numbers won’t be restricted to 200 alone and that more firing sessions will happen within the company soon. The downsizing comes at a time when the quickest unicorn in India is facing a lack of interest and investment from market players and many investors.
ILN was earlier a company of Times Internet, which Mensa acquired in 2022. This made Mensa get access to companies like iDiva, Hypp, and MensXP, among others. Employees from ILN were taken for a one-on-one meeting with the HR executives who asked them to leave their jobs the immediate next day. Some employees were given two months’ salary but many employees were given only one month of salary and asked to leave their jobs quickly, says a report.
The move came even after Mr. Ananth Narayanan gave assurance to the ILN’s employees during the acquisition period that they will not be asked to leave.
Suddenly, Mensa started finding the performance of the employees unsatisfactory and also showed how the growth of the company has been impacted badly. Mensa has a business model on similar lines to US-based Thrasio.
The acquisition period of Mensa was between October 2021 to December 2022 wherein the company at least got 17 companies. However, it has slowed down after the acquisition materialized. Mensa’s famous acquisitions include Villain, Dennis Lingo, and MyFitness.
It is not just Mensa that is laying off its employees. But a report said that 100 famous startups in India will be going through cost-cutting and layoff sessions during this and next year. This is due to the growing demand for AI-related technologies that are replacing human labor and also the recession in the world.
After the coronavirus pandemic times, many startup companies were opened and many were closed due to quick ways of making profits without proper plan and structure in place. Some employees were hired without giving much thought about what will happen if such roles will become redundant. While some processes were introduced just to be in the news for a while. But the startup ecosystem has got a really bad name after what it has done to the industry and the welfare of employees.
Not just big startups but even smaller startups these days are using existing manpower to get the work done rather than posting new job opportunities. In such a pace and huge labor market looking for jobs. It will be worth the wait to see how the economy will rise up again and help people make a decent living in the long run.