A Bengaluru-based health tech Mojocare layoffs 80 percent of its workforce nearly 160 employees. The layoffs are to improve capital efficiency and unit economics.
The company said in a statement said, “A majority of Mojocare investors initiated a review of the company’s financial statements. While the analysis remains ongoing, initial findings have uncovered financial irregularities and it has become apparent that the business model is not sustainable due to a variety of operational and market factors.”
“As a result, Mojocare will be scaling down operations, and the investor group is working with the company through its transition,” the statement added.
The company’s spokesperson said, “Facing difficult market conditions, we at Mojocare have had to make tough decisions to improve our unit economics.”
“Despite our best efforts, our business fundamentals have not worked out over the past few months”, the spokesperson added.
As per the reports, the layoffs are reported nearly 10 months after Mojocare raised a funding of $20.6 Mn from the likes of B Capital, Chiratae Ventures, Sequoia India’s Surge, and Better Capital.
Mojocare offers a range of holistic wellness solutions that are designed to provide end-to-end care health using a combination of science and Ayurveda. The company provided solutions for your Sexual Wellness, Hair Care, Weight Management or just looking to improve your overall health and well-being.
The move of layoffs is part of a larger trend of tech companies cutting jobs and slowing hiring as investors become increasingly fearful of a recession. Tech companies have either frozen the hiring process or laid off many employees.
Amazon sacked 27,000 employees in the last three months. The major companies that laid off employees include Infosys, Amazon, Google, Byju’s, Wipro, and Salesforce laid off a maximum number of workers globally.
Recently, the consulting giant Accenture shocked the industry by announcing plans to trim its workforce by 19,000 globally including India over the next 18 months.
As per true-up, So far in 2023, there have been 1,112 layoffs at tech companies with 315,599 people impacted (1,856 people per day). In 2022, there were 1,557 layoffs at tech companies and 243,318 people impacted (667 people per day).
