As the pandemic continues to wreak havoc on the global economy, we see more and more companies resorting to layoffs to stay afloat. One such company that recently made headlines is Hirect, a recruiting startup based in Bengaluru.
Introduction to Hirect:
Founded in 2019 by Arnav Agarwal, Hirect is a direct-hiring platform that uses AI to match job seekers with employers. The platform aims to make the hiring process more transparent, efficient, and cost-effective for both job seekers and employers.
Funding and Investors:
Hirect raised $2 million in its Series A funding round led by Kalaari Capital in August 2021. Other investors included Orios Venture Partners, angel investors including Ashish Tulsian, co-founder of fintech firm Posist, and Mahesh Murthy, co-founder of Seedfund. Hirect had ambitious plans to scale up its operations and expand its presence across India and Southeast Asia.
Performance:
Hirect was off to a promising start, with over 200 companies signing up to use its platform within a year of its launch. The company had also partnered with over 100 educational institutions to help fresh graduates find jobs.
Reason for Layoffs:
However, the pandemic hit Hirect hard, and the company was forced to scale back its operations. On November 2, 2022, the company announced that it would be laying off 40% of its workforce, which amounted to around 200 employees.
Statement from Company Stakeholders:
According to Hirect’s founder, Arnav Agarwal, the decision to lay off employees was not taken lightly. In a statement to the media, he said, “We had to make some tough decisions to ensure the long-term sustainability of our business. The pandemic has created an uncertain economic environment, and we had to align our resources accordingly”.
Conclusion
The pandemic has challenged businesses across the world, and layoffs have become a tragic reality for many. Startups like Hirect, which had ambitious plans for growth and expansion, are now finding themselves struggling to survive. As the pandemic continues to evolve, we can only hope that companies like Hirect can weather the storm and emerge stronger on the other side.
