San Francisco, Nov 15 (SocialNews.XYZ) US-based online retailer of pet food and other products Chewy, run by Indian-origin entrepreneur Sumit Singh, has reportedly laid off more than 200 employees.
The impacted roles were in HR, recruiting, data and business intelligence divisions, and included some directors and higher managers, including a vice president, reports TechCrunch, citing sources.
The company will reportedly provide a minimum of one month’s severance with additional weeks based on tenure.
Chewy confirmed the layoffs, saying as it heads into 2024, “we took the opportunity to consolidate some of our headcount and align our efforts into priorities which we believe will gain us the most significant customer wins and generate the highest business returns, to enable us to strengthen the company’s future”.
“This was a difficult decision that was carefully considered as part of our overall strategy and ongoing focus on becoming an ever more agile and disciplined company. We are grateful to our team members for their contributions and remain committed to supporting them during this transition,” a company spokesperson was quoted as saying.
In its recent fiscal third quarter earnings late last month, Chewy reported a revenue of $2.78 billion.
The company reported $10.1 billion in net sales in FY22. It boasts 20.4 million active customers.
“Coming out of the summer months, we are sensing a shift in consumer mindset toward being more discernible and, at the same time, with a higher willingness to consolidate their share of wallet to their trusted retailer of choice,” Singh said during investors’ call.
“This behaviour is driven by a more fluid macro environment, including high levels of inflation, which have been passed through the industry over the past 18 months. Our dialog with our suppliers confirms that these trends are permeating throughout the pet industry,” he noted.
Singh has been the CEO of Chewy (launched in 2011) since 2018, and serves on the company’s Board of Directors.
In 2019, he led the company through its initial public offering, raising over $1 billion in the process.
Singh holds a bachelor’s of technology degree from Punjab Technical University and a Master’s in engineering from the University of Texas at Austin in the US.
Source: IANS
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