After a period of relative quite, its trouble time for Grofers again. News coming in from various sources is stating that Grofers is about to lay off a staggering 10% of its employees. If true, it may be an indication of the fact that things are still not well at the grocery delivering service, and are forcing it resort to layoffs as a means to cut down costs and reduce the burden on its pockets.
According to Inc42, which cites an employee who was fired as its chief source, an email was sent to all the employees stating that 10% of the total work force will be laid-off in the near future. The e-mail was followed by personal sessions in which different options were explained to the employees — which were limited to tendering a resignation or accepting the lay off.
An interesting fact is that most of the fired employees belonged to Grofers delivery and customer relation managing teams. Lay-offs in the department can be safely taken to mean that the company is not really struggling under the burden of too many orders or customers, while 10 percent indicates that a significant portion of the work force was probably redundant.
Grofers has been in the news for all the wrong reasons in recent times. First it was because the company was pulling operations out of various cities, then it was because it was downsizing its existing operations and much more recently for withdrawing the placement offers it had extended to prospective hires of 2016. That said, the layoffs are not exactly a bolt from the blue, however they may prove to be a disappointment to those who were expecting Grofers to make a strong comeback.
Meanwhile, the company has been attracting the ire of its prospective hires, who have been publicly abusing it for cancelling jobs at the last moment. Although Grofers cited market conditions as its chief reason — and that is understandable — what is actually a bad example is how several of these hires were informed that their services were no longer needed, on the very day of joining. Definitely a bad practice.
Speaking on the topic, Prashanth Verma, AVP of Marketing at Grofers said,
We have revoked 67 offers in total. We are making some strategic changes in the company. We are downsizing because of the market environment and revised growth projections. So it is because of that these changes have been made and we are no longer able to give the offers that we had made
The layoffs may also be connected to the company’s relatively patchy performance in recent times. From it high of raising about $120 Mn (INR 780 Cr) in a funding round led by Japan’s SoftBank Corp in November 2015 — and consequently expanding to 27 cities — Grofers had to shut down operations in 9 cities in January. And with this most recent news piece of news, it doesn’t look like the company is out of its troubles yet.
Meanwhile, we await an official word from Grofers regarding the layoffs. Keep watching this space for more news on the topic.