Sharan Hegde’s The 1% Club Fires 15% Workforce
INTRODUCTION
1% Club Fires 15% Workforce and Sharan Hegde received a lot of criticism after this. This marks a major cost-cutting exercise for the startup. The decision affected nearly 30 employees. 1% club is a rapidly growing fintech startup. It offers some tools that can help you manage your finances. For example, you can calculate your fd returns. You can also book a free call with the insurance advisor. You can also book your masterclass from the website to gain financial independence.
As AI landscape is growing at a very high pace, the startup decided to lay off the employees. As mentioned by Sharan Hegde, the startup identified some AI driven cost savings that can help the company. The startup has been super strict with the financial planning and diligence. To add on, The annual revenue of the company is around $8 Million.
Well if the startup feels that it has a broader initiative and they want to cut the costs by using AI, it is their choice. This is obviously going to increase the operational efficiency of the 1% club. The company deserves a pat on the back for it’s tremendous work efforts. They started with 5 employees and now have around 200 employees in just a matter of 2 years.
Sharan Hegde’s post and our comments
Hegde said, “Needless to say, when you grow at such lightening speed you are bound to make some mistakes with hiring and redundant expenses. This is our first cost cutting excercise since inception. We have identified significant AI driven cost savings that can boost profitability and efficiency which can be reinvested in the business growth.”
We can say that building a business is like building a team. You all have to work together towards on goal. The game halts if someone stops working towards the goal. In this ever evolving startup scenario, taking decisions like these matter a lot. The transparency with which Mr. Sharan Hegde mentioned about his startup was commendable. Although these decisions are not easy, yet someone has to take on this hat of laying off !!
1% Club Fires 15% Workforce
1% Club Fires 15% Workforce at a time when recession is increasing and people are looking for jobs and jobs and jobs all the time. Various employers fill the comment sections on LinkedIn with people saying, “I’m interested.” When a profitable startup lays off employees, observers inevitably express their views.
But, 1% club might have to think on one thing which is the impact on the employees in the company. This creates a sense of insecurity in the employees. Although, there might be a lot of reasons for the laying off and the CEO would have taken this decision with utmost courage. Yet we feel that structured laying off would have avoided criticism and controversy.
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