The world is facing unprecedented times and businesses across industries are taking a hit due to the COVID-19 pandemic. Companies are exploring various cost-cutting measures, and unfortunately, layoffs seem to be the most popular choice. One such company is Capillary, a Bengaluru-based retail technology firm that recently announced employee layoffs. In this report, we take a closer look at the company, the reasons for the layoffs, and the impact it has on the industry.
Company Introduction and History:
Capillary is a Bengaluru-based startup that offers a cloud-based omnichannel customer engagement and commerce platform to retailers. The company was founded in 2008 by Aneesh Reddy, Krishna Mehra, and Ajay Modani. Capillary’s platform provides customer engagement and consumer loyalty solutions, with features such as customer data management, campaign management tools, and analytics. The company has served over 400 customers across 30 countries and has raised $102 million in private equity funding so far.
Funding and Investors:
Capillary has received funding from prominent investors such as Warburg Pincus, Sequoia Capital, and Norwest Venture Partners. In its latest funding round, Capillary secured $20 million from Warburg Pincus, Sequoia Capital, Norwest Venture Partners, and Qualcomm.
Reasons for Layoffs:
Capillary, like many other companies, has been severely impacted by the COVID-19 pandemic. The retail industry, in particular, has been hit hard due to the lockdown measures and the fear of the virus among consumers. As a result, retailers are cutting back on expenses, and Capillary is no exception. The company recently announced that it had laid off a number of employees due to the downturn in business caused by the pandemic.
Number of Employees Laid Off:
Capillary hasn’t disclosed the exact number of employees laid off, but sources suggest that the number is in the range of 15%-20% of its total workforce.
Impact on the Industry:
Capillary’s layoffs are just a small part of a larger trend in the industry. Startups and established companies alike are laying off employees to cut costs and stay afloat amid the pandemic. The retail industry, in particular, is facing a severe crisis, with many brick-and-mortar stores shutting down permanently. The sector is expected to lose over $2.1 trillion in sales due to the pandemic, according to a report by Coresight Research.
Statement from Company Stakeholders:
Capillary’s co-founder and CEO Aneesh Reddy recently released a statement regarding the layoffs. He said, “We have taken the difficult decision to let go of some of our colleagues, a decision that has been heart-wrenching for all of us. This is the first time we have been forced to take such a step in our 12-year history, and we are doing everything in our power to ensure the impacted employees are treated with respect and dignity.”
In conclusion, Capillary, a Bengaluru-based retail technology firm, has recently announced layoffs due to the economic downturn caused by the COVID-19 pandemic. The company, which provides a cloud-based omnichannel customer engagement and commerce platform to retailers, has been severely impacted by the pandemic. While the exact number of employees laid off is not known, it is believed to be around 15%-20% of its total workforce. The company’s co-founder and CEO, Aneesh Reddy, released a statement expressing his sadness and assuring that the impacted employees will be treated with respect and dignity. Capillary’s layoffs are a reflection of the larger trend of cost-cutting measures taken by companies across industries to deal with the impact of the pandemic.