Fintech Platform Khatabook Lays Off Over 40 Employees: Report The layoffs targeted employees in engineering, product and marketing verticals, according to reports citing close sources aware of the matter
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Fintech company Khatabook has fired over 40 employees in a fresh round of layoffs on Thursday. The layoffs targeted employees in engineering, product and marketing verticals, according to media reports citing close sources aware of the matter.
"Khatabook has laid off 42 employees across sales, marketing and analytics, and technology verticals. People who lost their jobs in the exercise have been given standard severance packages including 3 months salary among others," reportedly said one of the sources with the identity of anonymity.
Another source aware of the matter confirmed this and noted that the company has had multiple multiple rounds of layoffs over the past year.
"This is probably the third or fourth downsizing round. They are trying to cut costs to attain profitability," he said.
Khatabook has said to confirm the development stating that it was a part of restructuring. "In line with our profitability goals, we are reorienting some parts of our business which requires us to operate with a leaner team on certain business lines. This restructuring has impacted 6% of our 700 employees," said a company spokesperson in a statement.
Khatabook is providing all impacted employees with a separation package that covers three months of pay, a stock vesting option, health insurance extension and other job search-related support, added the statement.
The spokesperson also claimed that Khatabook's revenue has grown more than 3x in the last 12 months while the startup has reduced its burn by 50%. "We expect this revenue growth to continue as we aim to achieve profitability by Q1 of the next financial year primarily driven by growth in our financial services business," the spokesperson said.
As a result, the company doesn't foresee the need for any other people-related cost rationalisation measures in the future, the spokesperson added.
In November 2021, Khatabook had also shut down its e-commerce enablement product MyStore.