Table of Contents:
- Introduction
- Overview of Layoffs at Licious
- Strategic Shifts and Impacted Departments
- Compensation Package for Affected Employees
- Financial Snapshot and Growth Strategy
- Investor Interest and Industry Challenges
- Conclusion
1. Introduction
In a strategic move aimed at sharpening its growth focus, omnichannel meat retailer Licious has recently announced layoffs affecting 80 employees, constituting 3% of its workforce.
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Licious Fired 80 Employees From Its Company
2. Overview of Layoffs at Licious
The majority of the layoffs targeted corporate teams, particularly impacting sales, marketing, and technology executives. This move comes amidst what Licious terms as an “operational reset.”
3. Strategic Shifts and Impacted Departments
The company is reallocating resources away from certain ventures, such as plant-based meat, and redirecting its attention towards strategies like omnichannel expansion. The restructuring aims to optimize operations and streamline growth initiatives.
4. Compensation Package for Affected Employees
Impacted employees are being offered a compensation package consisting of two months’ salaries and variable payments for the fiscal year 2024. Licious emphasizes its commitment to supporting affected staff during this transition period.
5. Financial Snapshot and Growth Strategy
Despite the layoffs, Licious remains robust, boasting an annual revenue run rate of Rs 900 crore and a significant reserve of over Rs 800 crore from previous funding rounds. The company’s online business demonstrates profitability and is poised for EBITDA profitability by the end of fiscal year 2025.
6. Investor Interest and Industry Challenges
Investor interest in the direct-to-consumer (D2C) meat and seafood retail sector remains high, with prominent names like Temasek, Prosus, Tiger Global, and Amazon injecting over $1 billion in funding. However, the industry faces challenges such as market saturation and macroeconomic headwinds like inflation.
7. Conclusion
Licious’ decision to undertake layoffs as part of its operational reset underscores the company’s commitment to adaptability and sustained growth. While challenges persist within the industry, Licious remains positioned to navigate these hurdles and capitalize on opportunities for expansion and innovation.