CityMall Lays Off 191 Employees, Three Months After Raising $75 Million
The platform aims to help the new-to Internet users realize the power of Internet and e-commerce
CityMall, social commerce startup, has laid off around 191 employees from various departments including customer support, sales team, marketing, HR team among others. This comes three months after raising $75 million in funding by the company.
"191 of our employees will be parting with us due to structural changes across functions at CityMall. After exploring multiple options, we have realized that there are certain roles within the company which had to be dissolved to align to our revolving business model and the current business environment," the company, on Sunday, said in a statement posted on professional networking site LinkedIn.
The statement also added that, "We will be providing outplacement assistance to all the employees who will be moving out of the company. Each and every employee affected by this layoff has contributed to building CityMall to what it is today, and this is one of the toughest decisions the company has ever had to make."
Reports says that layoffs are happening not just in India, but across the globe. 209 tech startups worldwide have announced layoffs since the beginning of 2022. The startups like Meesho, Cars24, Unacademy, Udayy and others have fired more than 4000 employees over the past two months to cut cost and conserve cash.
CityMall is a social e-commerce platform, backed by global VCs including Accel Partners, Elevation Capital, General Catalyst, Jungle Ventures and Waterbridge Ventures. The platform aims to help the next 400 million new to Internet users realize the power of Internet and e-commerce. Grocery, fresh and packaged FMCG, electronics and fashion categories are the sectors that CityMall deals with. The startup has raised $110 million to date.
As per market analysis, till June 2022, the number of employees who had been laid off by tech startups amounted to 131,314 worldwide. Industries most affected include transportation, food, travel and finance.