Delhi, April 20: Layoffs are continuing to make headlines with buy-now-pay-later (BNPL) platform Simpl now among companies that has conducted layoffs to reduce costs and extend its runway, according to sources familiar with the matter. The company initiated job cuts citing uncertain macroeconomic conditions, reports said.
Simpl has laid off over 25 per cent of its workforce, which is around 150-200 employees, this week, reports have said. A Simpl spokesperson said that “In-lieu of the current economic condition and preparing for the new economic reality, we’ve re-looked at our headcount towards becoming a leaner and agile organisation. We are sincerely grateful to the employees for their valuable contribution.” Biggest Layoffs 2023 in Tech Industry: Top Companies That Announced Job Cuts Impacting a Major Chunk of Their Workforce.
CNBCTV18 reported that the company’s CEO, Nitya Sharma, held a virtual town hall to inform employees of the move. While Simpl confirmed the layoffs, it did not disclose the number of impacted staff. Amid Layoffs and Pay Cuts, Wipro Asks Freshers to Clear New Test Or Face Termination: Reports.
In a company-wide email, CEO Nitya Sharma said, “the world is now changing, e-commerce growth has slowed down in the near terms and we need to focus on doing a few things that our customers value extremely well. While we cannot fix the past, we have to take this corrective action to position the company for a stronger future.”
The email also noted that the company would help affected employees with financial, healthcare and outplacement support. Sharma also assured the staff that there would be no further team rationalisations. However, he added that Simpl had hired aggressively in 2022 as it felt confident of tackling the complex problems facing e-commerce growth.
Simpl was founded in 2016 by Nitya Sharma and Chaitra Chidanand. It is a buy-now-pay-later platform offering easy credit at points of sale and e-commerce checkout. Simpl claims it has 42 million users on its platform and has partnered with over 26,000 merchants. As of now, the firm raised $83 million across several funding rounds.
(The above story first appeared on LatestLY on Apr 20, 2023 03:43 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).