BharatPe founder Ashneer Grover in a LinkedIn post said that he never had to fire people because of a bad market. Mr Grover said he always hired in a considerate manner. The ex-Shark Tank India judge commented on the mass layoffs taking place across industries.
Mr Grover on LinkedIn wrote, “It’s sad to hear about firings every day. I am thankful that I’ve never had to fire people because of bad markets – because I’ve always hired considerately. As a founder, you’ve to think about the long game.”
He added, “I had posted about 25 per cent – 40 per cent salary reduction a while back as an alternative to mass firings. I just don’t get it why founders won’t go down that path. Everything gets repriced: energy, capital, technology. Why not people?”
“Glad I’ve put on myself a max cap of 50 people in the Third Unicorn. People joining me will have to worry only about building and growth – I’ve got my team’s back,” he added.
Check out his post here:
Several multinational companies including Amazon, Goldman Sachs, Microsoft, Meta, Google and Swiggy are laying off thousands of employees. The beginning of 2023 has been filled with headlines announcing job cuts at company after company.
In November, Mr Grover talked about “cost-cutting to extend runway” and the concept of “real salary vs paid salary”.
In another post on LinkedIn, Mr Grover wrote, “In 2021, the real salary (at which markets clear) at which your employees were getting poached was higher than the salary you were paying. In 2022 the real salary at which people will find jobs (if at all) if you let them go is lower than salaries you are paying. So if you think you will need people back – simply reduce salary by 25% (40% in case of tech employees) rather than doing mass layoffs. It’s a better solution as rehiring will be really uphill and costly. Reinstating salary is click of a button away.”
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