CleverTap is a Mumbai-based startup that provides a mobile marketing solution for businesses. The company was founded in 2013 by Sunil Thomas and Suresh Kondamudi. CleverTap has raised a total of $76 million through six rounds of funding. Its latest round – Series C – raised $35 million in funding led by Sequoia India and Tiger Global Management. The company has been rapidly growing in the industry and has won multiple awards for its excellent mobile marketing strategies.
Recently, CleverTap laid off 60 of its employees, which accounts for 20% of its workforce. The layoff announcement was made on 16th April 2020. The company reported that the layoffs were due to the economic impact caused by the COVID-19 pandemic. The layoffs were announced after the company’s board took a detailed consideration of the current business environment and its impact on revenue.
Impact on employees
The laid-off employees were given a severance package that includes a service pay, use of company assets, insurance coverage, and financial assistance for job search. The company stated that it was a difficult decision, and it was taken keeping in mind the employees’ interests. The affected employees would also receive a positive recommendation from the company to secure future roles.
CleverTap’s CEO, Sunil Thomas, released a statement on the company’s website that said, “The COVID-19 pandemic has impacted the many businesses, and CleverTap is not immune to these challenges. We’ve had to make some tough choices as a company to ensure that we remain healthy and sustainable.” He also mentioned that the company had a difficult time assessing the financial impact, and they had to restructure their business model accordingly.
Reason for layoffs
The COVID-19 pandemic has had a significant impact on the global economy. The marketing industry has also been severely affected, and many businesses have had to cut down on their expenses. CleverTap, being a mobile marketing solution provider, relies on its clients’ revenue, but the current situation has led to a decline in revenue for many businesses. The layoffs were a strategic decision that was taken to prevent further financial losses and ensure CleverTap’s sustainable future.
CleverTap’s layoffs have raised concerns not just for the company’s employees but also for its clients and investors. It is still unclear if the company will have to take further measures to sustain its business in the long run. However, the company’s board has stated that they are confident of overcoming these challenges and emerge stronger. CleverTap will continue to provide mobile marketing solutions to its clients, and they remain committed to providing excellent service while ensuring employee welfare. The current situation has affected many businesses, but we can hope that the economy will recover soon, and companies like CleverTap will resume their growth trajectory