New Delhi: Bengaluru-based coffee startup Third Wave Coffee has laid off 100-120 employees in a restructuring move, despite securing $35 million in funding just a few months ago. The layoffs affected employees across various departments, including tech, finance, marketing, business development, and app development.
Commenting on the reason for the layoff, the company cited a “strategic review” and the need for “team consolidation for efficiency”. However, the decision to cut jobs just after a successful funding round has raised concerns among employees and industry observers. (Also Read: Shocking! Tech Company CEO Coerces Women Employee Into Signing Sex Slavery Contract)
One employee, who spoke to Moneycontrol on condition of anonymity, said that the layoffs were conducted randomly, with no written communication provided to affected employees. (Also Read: Google Maps Introduces Fuel-Saving Feature For Indian Users: Check How To Use It)
“The head of HR and the founder have coming to each of us, speaking for 10-15 minutes and informing people that their roles are no longer needed in the restructured organisation,” the employee said.
“This has been going on for the past two days and there is going to be another round tomorrow (December 15). The best part? No one knows what a restructured organisation means. I thought we were doing well as a company,” the employee added.
What Is Third Wave Coffee’s Response?
Third Wave Coffee has not responded publicly to the layoffs, but in a statement to Moneycontrol, the company said that the restructuring exercise was a “one-time” event and impacted “less than 10 percent of the organisation.”
“As an organisation we are in a strong position post the recent fund raise. We will continue to scale and build TWC as India’s most loved coffee brand,” the company said.
Impact On The Coffee Industry
The Third Wave Coffee layoffs are the latest in a series of job cuts in the Indian startup industry. The economic slowdown and the ongoing global pandemic have harmed many startups, forcing them to make difficult decisions about their workforce.
The layoffs at Third Wave Coffee are a reminder that even well-funded startups are not immune to the challenges of the current economic climate. It is important for startups to have a clear growth plan and to be prepared to make adjustments as needed to weather difficult times.