Licious Is Latest To Join Layoffs Spree; To Cut 3% Of Its Workforce

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New Delhi: Licious, a prominent omnichannel meat brand based in Bengaluru, has recently made the decision to lay off 80 employees, constituting approximately 3 percent of its workforce. The move is described by the company as an "operational reset" aimed at sharpening its focus on growth.

Strategic Shift

The Bengaluru-based company, which boasted a workforce of around 3,000 employees as of January, stated that this strategic realignment is part of its efforts to streamline operations and drive expansion. ()

Financial Standing

Licious emphasized its robust financial position, revealing that it holds more than Rs 800 crore in cash from previous fundraising endeavors. The company highlighted the positive operating margins of its online business and projected to achieve EBITDA profitability by the end of the fiscal year 2025. ()

Industry Challenges

The decision reflects the broader challenges faced by startups, with dwindling funding prompting a renewed emphasis on sustainable growth and profitability. Many startups have been compelled to recalibrate their strategies to ensure long-term viability without relying excessively on investor capital.

Financial Performance

Despite experiencing a revenue uptick from Rs 682.5 crore in the fiscal year 2022 to Rs 748 crore in the fiscal year 2023, Licious also witnessed an increase in losses, which expanded from Rs 485 crore to Rs 500 crore during the same period.

Compensation And Support

In an effort to mitigate the impact of the layoffs, Licious has offered laid-off employees two months' worth of compensation along with variable payouts for the fiscal year 2024.

Future Plans

Despite the workforce reduction, Licious remains focused on its growth trajectory. The unicorn startup intends to unveil a renewed market expansion plan in the coming weeks.