We know that the current situation in the market, including the e-commerce space, is such that the companies need to lay off their employees in order to stay lean and be as profitable as possible otherwise their losses will soar up which is not good for their valuation in front of the investors. Talking about e-commerce, you must have heard of San Fransisco-based e-commerce company named Wish. It is worth noting that the company has just announced a fresh round of layoffs at the company. Do note that this is the third announcement of job cuts at Wish since January 2022.
As per a report, “Wish will slash its global workforce by 34%, or 255 employees. The layoffs will affect 160 workers based in the U.S., according to a Tuesday filing with the U.S. Securities and Exchange Commission”. Wish CEO has signed this filing. It states that these job cuts are done to “refocus the company’s operations to support its ongoing business prioritization efforts, better align resources, and improve operational efficiencies.” It is also mentioned by a Wish spokesperson that more details about this job cuts will be revealed after the meeting on Thursday.
While we know that almost every company, including e-commerce firms, have announced layoffs to become profitable, the situation with Wish seems to be difficult and different compared to others. “Wish’s latest announcement marks the third round of layoffs the company has initiated since 2022, and its stock price has fallen over 99% since going public in December 2020”, mentions a report. This clearly tells you that things are not right at the company and they are forced to lay off employees.
Mental Health company Headspace also laid off employees recently and said that “With the privilege of supporting the mental health and wellbeing of millions of people around the world also comes great responsibility to focus on the health of our business and safeguard it for the future,” which is the reason why they had to take this decision. It is also true that companies all around the world hired too many employees during the pandemic which has also forced to lay off its workforce as they are not required anymore.
