As the coronavirus pandemic continues to impact the lives of many people around the world in numerous ways, businesses that have seen their sales funnels and cash flows depleting are taking strong measures to ensure the survival and continuity of business.
Shop101, a Mumbai-headquartered social commerce company has asked nearly 40% of its 450 employees to resign while others have been asked to take pay cuts.
As per various social media posts by estranged employees and their family members, it is observed that the company has laid off 200 of its employees. What’s surprising is that the layoffs were made via a group call.
Lay off during this pandemic was expected in the talent ecosystem as several countries worldwide have entered a lockdown stage where people are repeatedly being asked to not step out of their houses in an attempt to prevent community transmission of the virus. Businesses are forced to close operations and assist authorities in containing the virus.
Due to these lockdowns, new age startups and small businesses are having to resort to tough measures like furloughing employees or laying them off. According to a report by the International Labour Organization, it is being estimated that the pandemic will lead to a joblessness crisis worldwide. The UN agency estimated that more than 2.5 million people will lose their jobs and the pandemic will have a wider impact on the economy.
Recently, a global tech travel firm Fareportal had laid off about 200 employees from its Gurugram and Pune offices amid the ongoing coronavirus pandemic.
Shop101 was founded in June, 2015 by Abhinav Jain, Aditya Gupta and Rishabh Dhall. The company provides a social commerce platform which enables entrepreneurs to sell online as well as on WhatsApp, Facebook & Instagram with zero investment by providing an online store in less than 2 minutes.
In March, the company raised Rs 28.69 crore in fresh capital from Vy Capital, Unilever Ventures, Kalaari Capital and Stellaris Venture Partners. So far the company has raised a total of $19.9mn in funding from various investors.
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