BNPL startup Simpl lays off over 100 employees as part of cost-cutting measures: Report

Buy Now Pay Later (BNPL) fintech startup Simpl has laid off over 100 employees in a significant restructuring effort aimed at reducing costs and improving profitability.

According to a Moneycontrol report, The job cuts affected staff across multiple departments, particularly impacting higher-paying roles like engineering and product.

The report said that during a company-wide town hall at 9 a.m. on Wednesday, CEO and Founder Nitya Sharma addressed the workforce, saying, "We are sorry to let go people and will do our best to help with stuff like outplacement." 

High-level employees also affected

The report The layoffs hit staff across various verticals and levels, including high-level employees.

Before this move, Simpl had a workforce of around 650, including core operations staff, interns, and calling agents. Some affected employees reported losing access to their Slack accounts even before the town hall started.

The D2C checkout vertical was also impacted. Many of the employees let go had recently joined the company, some having spent only 1 to 1.5 months at Simpl, the report mentioned.

Second consecutive year of layoffs

This is the second consecutive year that Simpl has undergone layoffs. In April 2023, the company laid off over 150 employees after performance reviews, citing overhiring amid anticipated growth in e-commerce during the pandemic. 

Cost-cutting measures to improve profitability

In response to these reports, Simpl said that the layoffs were part of a strategic move toward profitability.

"As an organisation committed to creating a shared value for our merchants, and millions of customers across the country, we have undertaken a series of measures to improve operational efficiencies, reduce fixed and overhead costs, along with taking the difficult decision of letting go of some of our talented employees," Ashish Kulshrestha, Head of Corporate Communications, told the publication. 

The company has "laid out a comprehensive growth plan" with a "razor-sharp focus on profitability."