Harsh Pokharna, CEO and founder of OkCredit, is receiving widespread praise for his transparent and compassionate handling of layoffs, setting a rare example in the corporate world. In a LinkedIn post, he shared how the company laid off 70 employees due to budget constraints while ensuring dignity and support for those affected.
Acknowledging mistakes and taking responsibility
Pokharna admitted that hiring too fast and burning too much capital led to the difficult decision. “It was our mistake, and we owned it,” he wrote, emphasizing that layoffs were one of the hardest challenges he faced as a founder. Instead of resorting to impersonal methods, OkCredit took a humane approach to ensure employees were treated with respect.
OkCredit prioritised transparent communication, conducting one-on-one conversations with each affected employee to explain the decision. The company also provided career assistance, including referrals, introductions, and job leads, to help them transition smoothly.
This approach led to 67 out of 70 employees securing new jobs before their notice period ended. For the remaining three, OkCredit provided two months’ extra salary to support them financially.
Pokharna highlighted the cold and impersonal nature of recent tech layoffs, where many employees were notified via email, blocked accounts, or sudden Slack removals. Criticising such methods, he stated, “Yes, layoffs happen. But how you handle them says everything about your culture.”
Social media applauds Pokharna’s leadership
Pokharna’s post struck a chord with many LinkedIn users, who praised his accountability and leadership. One user wrote, “Real power lies in owning up. True quality of a leader.” Another added, “Mistakes happen, but employees shouldn’t bear the brunt. You did the right thing.”