Simpl Streamlines Workforce in Push for Profitability

Simpl, a prominent player in the Buy Now Pay Later (BNPL) fintech space, has undergone a significant workforce restructuring. This strategic move aims to enhance the company’s profitability through cost reduction measures.

Multiple Departments Impacted by Job Cuts

A report by Moneycontrol revealed that over 100 employees were let go during this restructuring process. The job cuts affected personnel across various departments, with a noticeable impact on higher-paying positions like engineering and product development.

CEO Acknowledges Difficulty of Layoffs

During a company-wide town hall meeting held on Wednesday, CEO and Founder Nitya Sharma addressed the workforce. She expressed regret over the layoffs but emphasized the company’s commitment to supporting departing employees. Simpl will reportedly offer outplacement services to assist those impacted in finding new opportunities.

Impact Across All Levels

The job cuts were not limited to specific departments or seniority levels. The report highlights that the layoffs encompassed various verticals and positions, including senior-level employees.

Recent Hires Also Affected

Prior to this restructuring, Simpl’s workforce comprised roughly 650 employees, encompassing core operations staff, interns, and call center personnel. Notably, some recently hired employees, some with tenures as short as 1-1.5 months, were also part of the layoffs. The D2C checkout department was not spared either.

Second Round of Layoffs in Recent Memory

This workforce reduction marks the second consecutive year of layoffs for Simpl. In April 2023, the company let go of over 150 employees following performance reviews. These earlier layoffs were attributed to over-hiring in anticipation of a pandemic-driven e-commerce boom that ultimately failed to materialize.

Strategic Cost-Cutting for a Sustainable Future

In response to the reports, Simpl clarified that the layoffs were implemented as part of a strategic plan to achieve profitability. The company issued a statement through Ashish Kulshrestha, Head of Corporate Communications, emphasizing their commitment to creating value for both merchants and customers. He elaborated on the various measures undertaken to improve operational efficiency, including reductions in fixed and overhead costs. The statement acknowledged the difficult decision to let go of talented employees but underscored Simpl’s commitment to a comprehensive growth plan with a clear focus on profitability.