WayCool Foods Lays Off Over 200 Employees
These measures aim to streamline operations and reduce losses amid challenges in securing funding, as per media report
Chennai-based agricultural supply chain start-up WayCool Foods has reportedly laid off over 200 employees across various departments, marking the third round of layoffs in the past year. These measures aim to streamline operations and reduce losses amid challenges in securing funding, according to a Moneycontrol report citing sources.
The Lightbox-backed start-up previously cut over 300 positions in July of the previous year and reduced its workforce by 70 staff members in February.
The latest layoffs have affected employees across multiple locations, including Chennai, Bengaluru, and Hyderabad, as well as within its subsidiaries, CensaNext and BrandNext.
The report indicates that the company is facing severe financial challenges, including delayed salary payments to staff and overdue client payments, further exacerbating its financial strain.
“Salaries have faced delays in the past, and the company has yet to process the payslips for June. Additionally, funding has dried up, and client payments are stuck,” two sources said in the report.
The financial strain has been compounded by unpaid dues to various vendors, including millers, logistics partners, and service providers like SGS. “Vendor payments were made in rotation over the past three months, but this has completely stopped since June as collections from clients have been delayed,” the report added.
WayCool Foods has acknowledged these layoffs as part of its ongoing restructuring efforts to 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 stated in a written response to Moneycontrol.
The company did not specify the exact number of employees affected by the layoffs.
Regarding the funding crunch, WayCool reported that it has secured 75 per cent of the capital needed from its ongoing bridge round of $40 million and expects to complete the fundraising by August. The firm is optimistic that this funding will provide the necessary runway for cash profitability.
