Bengaluru-based fintech startup Fam made headlines on Wednesday when co-founders Sambhav Jain and Kush Taneja announced the unfortunate layoff of 18 employees. The decision, attributed to a strategic shift from hyper-growth to sustainability, came as a challenging move for the “people-first” organization.
Sambhav Jain took to X, formerly known as Twitter, to share the news and express the difficulty of letting go of team members. He emphasized the emotional connection between the team and the company, making the decision even harder. Jain acknowledged the contributions of the affected employees and their role in building Fam.
The co-founder explained that the layoffs were necessitated by the startup’s shift in focus, which resulted in the inability to offer the affected employees positions that aligned with their personal growth and passion. Jain and Taneja recognized the value of their team members’ skills and capabilities and expressed their confidence that these individuals would go on to achieve remarkable things in their future endeavors.
Despite the founders’ assurance of helping the fired staff find new opportunities, the post received mixed reactions from users. Some questioned the authenticity of the “people-first” approach, arguing that companies cannot claim to prioritize their people while conducting layoffs during a funding crunch.
Amid the debate, one user expressed their intent to hire from the affected group, showing support for Fam and recognizing the challenges faced by startups in a competitive market.
The incident reflects a broader trend in the startup ecosystem, where companies have been forced to take difficult decisions amid challenging economic conditions. Several prominent startups have announced layoffs in 2023, with companies like Meesho, Unacademy, and Swiggy reportedly letting go of hundreds of employees.
As the startup community grapples with the balancing act of growth and sustainability, the focus on employee welfare and ethical decision-making remains a critical aspect of building a strong and resilient entrepreneurial culture.
Sources By Agencies
