“WayCool Foods Cuts 200 Jobs in Third Layoff Round Within a Year”
WayCool Foods, a Chennai-based agriculture supply chain startup, has announced significant layoffs affecting over 200 employees, marking the third round of job cuts in the past year. This decision comes as the company faces escalating financial challenges and strives to reduce operational costs amid a prolonged funding crisis.
WayCool Foods, a Chennai-based agriculture supply chain startup, has announced significant layoffs affecting over 200 employees, marking the third round of job cuts in the past year. This decision comes as the company faces escalating financial challenges and strives to reduce operational costs amid a prolonged funding crisis.
The recent layoffs come after the startup previously reduced its workforce by over 300 employees in July 2023, followed by the termination of 70 staff members in February 2024. The latest round of job cuts has impacted employees across multiple locations, including Chennai, Bengaluru, and Hyderabad, as well as its subsidiaries CensaNext and BrandNext.
According to a report by Moneycontrol, the company’s financial situation has deteriorated further. Delays in salary payments, including the pending June payslip, and a lack of funding have compounded the company’s difficulties. Unpaid dues to vendors, such as millers, logistics partners, and service providers like SGSs, have exacerbated the financial strain. “Salaries have been delayed in the past, and the company is yet to process the June payslip. Funding has dried up, and the payments from clients are stuck,” a source familiar with the situation disclosed.
The report also noted that vendor payments have been sporadic over the past three months, with the payments completely halting since June due to delayed collections from clients.
In response to the layoffs, WayCool Foods issued a statement acknowledging the workforce reductions. The company emphasized that the layoffs are part of a broader strategy to streamline operations and achieve profitability. “Each of WayCool’s businesses is executing their plans to get to profitability. As part of this, roles and structures are further simplified and automated. This will be a continual process,” the company said.
Sources By Agencies
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