Fashion Startup Shakeup: Blissclub LAYOFFS 21 Employees Let Go
Blissclub expands offline presence; launches its flagship store in Bandra, Mumbai - Images Business of Fashion
Bengaluru-based fashion startup Blissclub has reportedly laid off approximately 21 employees, representing 18% of its workforce, as part of a restructuring effort initiated in January, according to sources familiar with the matter. Founder and CEO Minu Margeret addressed the affected employees during a town hall meeting on January 11, with reports suggesting that up to 30 employees may have been impacted.
The layoffs affected various teams, including sales, marketing, growth, and product development, with the creative team bearing the brunt of the restructuring. The startup is providing a two-month salary severance package to those affected. While Margeret attributed the restructuring to changes in strategy and noted record-breaking topline performance in December 2023, sources indicate that the primary reason behind the layoffs may be Blissclub’s struggle to secure fresh capital amid high cash burn. Since its inception in 2020, Blissclub has evolved from an online platform selling activewear for women to include offline stores and expand its product line.
However, its financials reveal a significant surge in net losses and total expenditure, highlighting the challenges faced by the startup amid a tough funding climate. This move adds Blissclub to the growing list of Indian startups resorting to cost-cutting measures amid the ongoing funding crunch.
