Hiring and Firing has become a very common phenomenon among startups. Couple of weeks before, it was Snapdeal that came in news for its planned way of layoff of 200 BPO employees by giving them unrealistic targets to achieve. Now, it’s Commonfloor, an acquisition of Quikr that is in limelight for its firing of more than 150 employees.
After the acquisition by Quikr in January 2016 for anticipated amount of 120-160M $USD, Commonfloor has been downsizing its team. CommonFloor had around 1000 employees at time of merger, while Quikr had 350 employees in its real estate division and its total employee count was 1600. Soon after the merger, process of finding suitable roles in Quikr was initiated. The latest batch of employees who were unable to find roles at Quikr was asked to seek opportunities outside the company. Commonfloor is evacuating its space to move to Quikr premises.
Company officials stated “As part of the overall integration exercise, we have been analyzing all our assets and believe it is best to consolidate our physical as well as people assets based on our business needs. A good percentage (of employees) has been absorbed (into various roles at Quikr). (Since Quikr has full-fledged team, so the same role can’t be duplicated.)”
This hiring and firing frequency of startups is raising a concern on the credibility of startups. If an employer can’t take care of his internal customers, it’s difficult to assume that healthy relationship would be managed with external consumers. Also, it’s raising serious concerns on the credibility of startups as a career option. Startups should decide the best suitable strategy based on expansion plans, acquisition target etc. to avoid the massive firing and hence the reduced reputation in market. Manpower requirements planning during the initial phase itself will avoid the issues of hiring and firing in future.