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

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

CityMall Twitter handle

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.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Related Topics

Leadership

International Security Firm Welcomes Female India Native to an Essential Leadership Position

Yasmin Brar has been appointed as the Operations Strategy Director, a role that underscores the company's commitment to innovation, expansion, and strategic management

Business Ideas

55 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

News and Trends

The Transformative Power Of Entrepreneurial Households In Shaping The Future Of The Indian Economy

According to the report, India's 247 million entrepreneurial households drove an $8.8 trillion transaction value in FY23 unleashing a new economic landscape.

Entrepreneurs

The Last Mile Mate: Uttam Digga, Co-founder, Porter

The start-up has served over 1.5 crore customers. It has 7.5+ lakh driver-partners on board and is present in 20+ cities across India

Marketing

5 Ways ChatGPT Will Impact Digital Marketing

ChatGPT is creating ripples across the digital landscape right now. Here are five ways it can benefit your ads, campaigns and marketing strategies.