On Wednesday, Simpl, a Buy Now, Pay Later (BNPL) startup, let go of more than 160 employees in various departments to enhance operational effectiveness and decrease fixed and overhead expenses.
According to insiders familiar with the situation, Nitya Sharma, CEO and co-founder of Simpl, announced the layoffs during a townhall meeting at 9 am on Wednesday. The layoffs affected employees at all levels, including some senior employees.
“Some employees, who have been laid off, were logged out of their Slack accounts even before the townhall,” a source said.
The workers were assured of receiving a severance package, although the exact amount has not been determined yet. Prior to the job cuts, the organization located in Bengaluru had a workforce of approximately 650 individuals.
According to another source, a few individuals were terminated in March and April due to unsatisfactory performance evaluations.
“Most of us were expecting appraisals for our performance last year. This layoff was very sudden,” they said.
According to Simpl’s statement, the dismissal was a step towards the organization’s goal of becoming profitable.
“As an organisation committed to creating a shared value for our merchants, and millions of customers across the country, we have undertaken a series of measures to improve operational efficiencies, reduce fixed and overhead costs, along with taking the difficult decision of letting go of some of our talented employees,” said Ashish Kulshrestha, head of corporate communications Simpl.
He also said the company had laid out a “comprehensive growth plan” while having a “razor-sharp focus on profitability”.
Simpl laid off more than 150 employees in April of last year, citing an overstaffing issue caused by their belief that the surge in e-commerce during the pandemic would sustain.
“I am responsible for making this difficult decision and understand the gravity of its impact on each of you, particularly those of you who are impacted during these uncertain macroeconomic conditions,” Sharma had said in a letter to staffers.
