MC Tech 3 | ShareChat parent lays off 600 employees; PrepLadder in hot water over unpaid dues; and more

One important thing: Amid rising criticism over alleged mis-selling from almost all corners of society, Byju’s has decided to change its sales strategy .?

To avoid mis-selling, the company would not send sales executives to potential customers' homes to pitch their courses.

• The firm would be switching to remote sales entirely, which would have a centralised tech-driven audit process to ensure accurate customer identification and clearer communication with customers

?In today’s newsletter:

• ShareChat parent lays off 600 employees
• PrepLadder in hot water over unpaid dues
• Wipro CHRO on onboarding delays

As the World Economic Forum kicks off in Davos, we are starting a new (temporary) section to bring you the latest action from ground zero.

ShareChat parent lays off 600 employees

2023 is proving to be a challenging year for startup employees. Just three weeks into the year, four well-funded unicorns have announced layoffs. The latest company to do so is ShareChat's parent company, Mohalla Tech.

Driving the news

Mohalla Tech, which is currently valued at around $5 billion, has laid off nearly 600 employees across departments and levels

• The company has raised over $520 million since December 2021 and closed a $255 million round led by Google parent Alphabet in June of last year
• The layoffs were communicated to employees via email, and the company's CEO held a town hall meeting at noon today to further discuss the matter
• Excessive hiring after a series of funding rounds resulted in layoffs, according to a source
• Mohalla Tech also shut down its fantasy sports platform Jeet11 in December, resulting in nearly 115 layoffs

However, the company disputed the figure, claiming that it laid off "more than 500 employees," or roughly 20% of its workforce, and not 600. It also announced benefits for those affected.?

Mounting layoffs

In the first 16 days of the new year, startups in the country have fired more than 1,000 employees to cut costs

The total number of employees laid off has reached close to 20,000 since the beginning of 2022. As funding is expected to slow down further this year , startup employees should be prepared for a challenging 2023.

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