Tiger Global-backed used car retailer, Spinny has laid off around 285 employees as the company merged its Truebill and Max platforms in an effort to consolidate its operations under a single brand. The rejig would impact nearly 4.5% of the company’s workforce which stood at 6,200 employees, the company confirmed.
About 30% of the impacted staff are from the budget offering Max unit, while the luxury offering Truebill unit took the larger hit in terms of workforce shed, said a company source aware of the matter. All impacted employees are said to be from the sales functions across units, while blue collar and technical roles are claimed to be completely unimpacted. According to a statement to the media, the layoffs planned as part of have “nothing to do with cost cutting, runway, business health etc.”
The company statement adds that impacted employees have been paid severance upfront for the duration equivalent to their notice period plus an additional 30 days.
It also added that laid off employees will continue to receive family insurance coverage till 31st December, 2023. Meanwhile, employees who were to get their ESOPs to be vested by 1st January, 2024 will now be made eligible for accelerated vesting, the company added.
Laid off employees will also be allowed to keep their company assets as a “gesture of support”. The statement also mentions that a “rigorous outplacement drive” is also being arranged for laid off employees to be placed elsewhere.
This business reorganisation will strengthen our go-to-market business model, reduce costs and improve our margin profile, putting us on an expedited path to profitability,” the company said in a statement. The company claims that the layoffs witnessed as part of the rejig “has nothing to do with cost cutting, runway, business health, etc.”