Furlenco Lays Off 180 Employees in Push for Automation
Furlenco, a Bengaluru-based furniture rental startup, has recently announced a layoff of 180 employees in a bid to streamline operations and push for automation. The news has left many questioning the future of the company, which had previously been lauded for its innovative approach to the rental industry.
Furlenco was founded in 2012 by Ajith Mohan Karimpana, with the goal of making furniture rental accessible and affordable for all. The company began with a handful of employees and a small inventory of furniture, but quickly gained popularity as word spread about its unique approach to renting.
Over the years, Furlenco has grown significantly, expanding its inventory and customer base throughout India. In 2018, the company raised $6 million in Series C funding, which helped it to expand further and invest in new technology.
At its peak, Furlenco employed over 900 people across the country. However, with the Covid-19 pandemic disrupting the economy and changing consumer behavior, the company began to struggle. It reported losses of Rs 169 crore in the financial year 2020-21, up from Rs 145 crore in the previous year.
As a result of these challenges, Furlenco has been forced to make some difficult decisions. In March 2022, the company announced a layoff of 180 employees, representing around 20% of its workforce. The layoffs primarily affected employees in the company’s warehouses and logistics departments, as Furlenco looked to automate more of its operations.
“We have been facing challenges for some time now, and we believe that automation is the way forward,” said Ajith Mohan Karimpana, founder and CEO of Furlenco. “This decision was not taken lightly, but we believe it is necessary for the long-term success of the company.”
The decision to lay off employees has been met with criticism from some quarters, with critics arguing that Furlenco should have done more to support its employees during these difficult times. However, others have praised the company for its forward-thinking approach and willingness to make tough decisions in order to secure its future.
Despite the recent challenges, Furlenco remains committed to its goal of making furniture rental accessible and affordable. The company is continuing to innovate and invest in technology, with plans to expand its offerings in the coming months.
In conclusion, the layoff of 180 employees at Furlenco has raised many questions about the future of the company. While some have criticized the decision, others see it as a necessary step in the company’s ongoing efforts to innovate and stay ahead of the curve. It remains to be seen how Furlenco will fare in the coming months and years, but one thing is clear: the company is committed to its mission of making furniture rental accessible and affordable for all.
