Udaan has announced the second round of layoffs due to macroeconomic conditions.
About 10% of the company’s 3000-permanent workforce will be impacted by the layoff. These layoffs will affect nearly 1,000 employees.
On the layoffs, an Udaan spokesperson said, “As Udaan moves forward in its journey to becoming a profitable company, the efficiency enhancement drive and the evolution in the business model have created some redundancies in the system, with some roles no longer required.
As a responsible organisation, we are working towards providing all requisite support to the impacted employees. We believe in efficiency as a driver of profitable growth and will continue to refine our cost structures and models. In this direction, we have taken numerous steps, with enhanced digital capabilities, to achieve efficiency and scale, become more agile and remain competitive in the marketplace.
These initiatives, executed by our strong leadership team, have not only helped us achieve positive unit economics but also reduced inefficiency in the system, with huge cost benefits, which is key to building a sustainable business”.
Late last month, Udaan raised $120 million in convertible notes and debt from existing shareholders and bondholders among others. According to an internal email sent by the company’s Chief Financial Officer (CFO) Aditya Pande, the company is also aiming to become IPO-ready in 12-18 months.
