Meat delivery startup Licious on Friday initiated a cost-cutting measure, resulting in layoff of approximately 3% of its workforce, equivalet to 80 employees.
The company said in a statement that the layoffs would be made in one go and won’t be undertaken in a phased manner.
It has offered two months of compensation, along with the variable payout for FY24, to the retrenched employees.
As of last month, the company had approximately 650 corporate staff and 2,400 individuals engaged in production and supply chain roles, totaling at around 3,000 employees,
Confirming the development, a spokesperson for Licious said, “Licious, as a brand, sees significant scope in expanding the number of targeted households to further fuel the consumer transition from traditional markets to contemporary purchase formats. We are reprioritising our cost outlays, considering the new growth levers. In doing this, it is unfortunate that we have to part ways with some employees who have been a part of our journey.”
The development comes after the Bengaluru-based unicorn reported stagnant revenues alongside consistent monthly cash outflows in FY23.
Despite ending FY23 with revenues totaling `700 crore, it fell short of its own projections of achieving `1,500 crore in revenue during the fiscal. Monthly revenues hovered around the `62-68 crore range until September last year. Currently, the company’s monthly revenue slightly exceeds `75 crore, with expectations to achieve an annualized revenue run rate (ARR) surpassing `900 crore by the end of FY24.
From April to September last year, the company maintained a monthly cash outflow within the `22-26 crore range. However, the company claims that recent efforts have led to a reduction in cash burn, with the company aiming to attain EBITDA profitability by the end of FY25.