Indian fintech startup Simpl has announced that it is cutting over 150 jobs, becoming the latest company to join the wave of tech layoffs. Simpl, which offers a buy-now-pay-later service for online shoppers, reportedly admitted to overhiring during the pandemic due to the rise of the e-commerce sector. However, it has now decided to take corrective action to align its workforce with its business needs.

Simpl CEO Nitya Sharma broke the news to employees in a letter, in which he expressed his regret and gratitude for their contributions to the company’s mission. The letter also outlined the steps the company would take to assist affected employees, including providing financial, medical, and outplacement support.

The company has stated that its decision to cut jobs was based on its need to focus on its most important customer priorities and initiatives. By reducing the number of projects it works on, Simpl aims to enhance its execution and move more quickly to meet customer demands.

Below are some additional details on the Simpl job cuts:

Reasons for the Layoffs

In his letter to employees, Sharma explained that Simpl had experienced nearly 10% growth in business between June 2020 and January 2022, following the first wave of COVID-19. However, the company realized at the beginning of 2022 that it needed to hire more people quickly to execute multiple initiatives simultaneously. This was in order to make e-commerce bigger, simpler, more trusted, and more democratic.

The company believed that it could handle the complex challenges facing e-commerce growth and that it had the ability to execute its initiatives. However, due to changing market conditions, the company now believes that it needs to focus on doing a few things that its customers value the most. Simpl’s aim is to ensure that it is positioned for a stronger future and can address its customers’ most pressing issues first.

Employee Assistance

Simpl has committed to offering financial, medical, and outplacement support to all affected employees. The company has also asked employees to work remotely for the time being to provide them with the necessary support during the transition.

One-on-one meetings were scheduled with all affected employees by 5 p.m. on the day of the announcement. An all-hands meeting was held at 6 p.m. the same day, followed by a town hall and AMA the next day. Employees who were not affected by the layoffs were not required to attend the one-on-one meetings.

Moving Forward

Simpl has stated that it will continue to work towards its long-term goal of launching a new form of e-commerce that allows any business to sell to customers online and provide the same user experience as large marketplaces and platforms. To achieve this, the company will develop the necessary products, technologies, and infrastructure over several decades.

Simpl believes that by being financially responsible, it can make its business stronger and work on long-term projects that may take longer to show results. The company has emphasized that its overall opportunity and customer needs have not changed, and it will simply be shifting its focus to better address them.

Conclusion

Simpl’s decision to cut jobs is not unique in the tech industry, which has seen a number of companies reduce their workforce in recent years. However, it is notable that Simpl has cited its overhiring during the pandemic as a reason for the layoffs. The company’s commitment to providing support for affected employees is also commendable, as is its focus on addressing its customers’ most pressing needs and initiatives.