 "Downsizing to dictate next round of funding for Housing")
Housing.com, the Mumbai-based technology start-up, might be set to undertake another round of lay-offs, sources said. The company, which had staff strength of about 2,500 in March, has been consistently making its wage bill leaner. After the latest round of retrenchment, the staff is down to about 1,800.
Sources said the next round of funding is dependent on getting the staff strength down to 1,200 and another round of firings is in the offing. "It is difficult to put a number to the lay-offs. Housing hired indiscriminately in March and handed fat pay packets to whoever applied and ended up overstaffing. There was a bench in digital marketing once," said a senior executive. Several of these jobs were then made redundant and talent started to leave the company. The services of those company didn't replace them. Those who didn't leave were terminated.
Those who were fired, sources said, were given two or three-month severance pay. The contracts had just a one-month clause written in it. "The only restructuring the company is doing has already been communicated... The company has many offices across the country, and, as a result, the restructuring happens across a few days, but we are not doing any additional restructuring," Housing chief executive Jason Kothari said. Sources, however, insisted the lay-offs are set to happen sooner rather than later and said that the burn was too high and retrenchment was part of the process to bring it down. For those who were terminated, there is still confusion about the equity that Rahul Yadav, the founder, had donated to his employees in June.
"Modalities of Yadav's shares are currently being worked on," Kothari said in an e-mail. Over the past six months, the tech-realty company has reportedly shut down six divisions within the company and has started to turn its focus purely on buying and selling of property and land.
"Housing.com will now be laser focused on solving the pain points in home buying and selling, the largest real estate segment, and we are excited about the potential impact our solutions could have on consumers, developers and agents across the country. We will be reorganising the company to fit this new focused strategy and, to this end, expect to reduce our workforce," said Kothari. The shuffle caused a bit of annoyance and some employees said it would affect the business adversely.
"Renting was Housing's money spinner and volume churn machine and that has been shut down. The hits have come down significantly," said another executive.
Sources said the next round of funding is dependent on getting the staff strength down to 1,200 and another round of firings is in the offing. "It is difficult to put a number to the lay-offs. Housing hired indiscriminately in March and handed fat pay packets to whoever applied and ended up overstaffing. There was a bench in digital marketing once," said a senior executive. Several of these jobs were then made redundant and talent started to leave the company. The services of those company didn't replace them. Those who didn't leave were terminated.
Those who were fired, sources said, were given two or three-month severance pay. The contracts had just a one-month clause written in it. "The only restructuring the company is doing has already been communicated... The company has many offices across the country, and, as a result, the restructuring happens across a few days, but we are not doing any additional restructuring," Housing chief executive Jason Kothari said. Sources, however, insisted the lay-offs are set to happen sooner rather than later and said that the burn was too high and retrenchment was part of the process to bring it down. For those who were terminated, there is still confusion about the equity that Rahul Yadav, the founder, had donated to his employees in June.
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"Whenever we asked about equity we were told it is being held in escrow or there are some legal issues around it," said the executive. Several of those who were fired were not given any part of that equity.
"Modalities of Yadav's shares are currently being worked on," Kothari said in an e-mail. Over the past six months, the tech-realty company has reportedly shut down six divisions within the company and has started to turn its focus purely on buying and selling of property and land.
"Housing.com will now be laser focused on solving the pain points in home buying and selling, the largest real estate segment, and we are excited about the potential impact our solutions could have on consumers, developers and agents across the country. We will be reorganising the company to fit this new focused strategy and, to this end, expect to reduce our workforce," said Kothari. The shuffle caused a bit of annoyance and some employees said it would affect the business adversely.
"Renting was Housing's money spinner and volume churn machine and that has been shut down. The hits have come down significantly," said another executive.