Simpl, the buy-now-pay-later startup, has recently announced a significant round of layoffs. More than 100 employees across various departments have been affected by the layoffs. The announcement was made by the CEO and co-founder of Simpl, Nitya Sharma, during a Townhall session on Wednesday, May 8th at 9 am, according to media reports. Some employees were even disconnected from their Slack accounts before the Townhall commenced.
The layoffs impacted personnel from different verticals, including high-ranking employees. While the company promised severance, the exact terms remain undisclosed. A company spokesperson revealed that the layoffs are part of the company’s efforts to enhance operational efficiency and reduce fixed costs. However, they emphasized the company’s commitment to fiscal prudence and outlined plans for growth with a focus on profitability.
This recent decision by Simpl is similar to a move made in April of the previous year when the company laid off over 150 employees. The reason was attributed to over-hiring driven by assumptions of increased e-commerce demand due to the pandemic. During that period, Sharma addressed the staff through a letter, taking responsibility for the decision and acknowledging its repercussions, especially amidst economic uncertainties. She assured affected employees of a severance package, healthcare benefits, as well as outplacement and counseling support to assist them during this transition.
