Licious Is Latest To Join Layoffs Spree; To Cut 3% Of Its Workforce
In a surprising move, Licious, the esteemed omnichannel meat brand headquartered in Bengaluru, has announced it will be shedding 80 members of its team, which accounts for approximately 3% of its entire workforce. Termed by the company as an “operational reset,” this decision is geared towards realigning its focus on essential growth areas.
With a workforce that reached around 3,000 employees by January, the Bengaluru-based brand articulates that this strategic reorientation is a part of its broader initiative to enhance operational efficiency and drive forward expansion. Licious prides itself on a strong financial standing, possessing over Rs 800 crore in cash reserves from prior fundraising activities. It underscores the profitability of its online segment and its goal to attain EBITDA profitability by the close of the fiscal year 2025.
This restructuring move mirrors the challenges confronting the startup ecosystem at large, where diminishing funding forces a shift towards sustainable growth and profitability. Many startups find themselves revisiting their strategies to safeguard their long-term sustainability without overdependence on external funding.
Despite achieving a surge in revenue from Rs 682.5 crore in the fiscal year 2022 to Rs 748 crore in fiscal year 2023, Licious observed its losses widen from Rs 485 crore to Rs 500 crore in the same timeframe. This financial trajectory indicates the pressures the company faces amidst its growth journey.
To soften the blow of these layoffs, Licious has extended a support package to the impacted employees, which includes two months of salary and variable compensation for the fiscal year 2024. This gesture reflects the company’s commitment to ensuring a smooth transition for its departing team members.
Even with the reduction in its workforce, Licious is not slowing down. The company is gearing up to announce a comprehensive market expansion strategy imminently. This new phase aims to fortify Licious’s position in the market, propelling the startup further along its path of growth and expansion despite the recent workforce optimization.
As the landscape for startups becomes increasingly competitive and challenging, measures such as these highlight the importance of operational efficiency and financial prudence. For Licious, this recent workforce reduction represents not just an immediate cost-saving measure, but a strategic pivot towards ensuring long-term success and stability in a volatile market.
