Navi Technologies, a non-banking financial company (NBFC) founded by Sachin Bansal, who earlier co-founded Flipkart, has reportedly laid off 20% employees, with the number of impacted staffers estimated to be around 200 (more than 250, according to Business Today).
The layoffs commenced on Tuesday and will conclude at the end of the first half on Friday, the publication reported citing a source, who added that ‘no department is left untouched.’
‘Let go without severance’
A person who was relieved by the Bengaluru-based startup on the very first day of the ongoing layoffs, revealed no severance package was offered; this, he said, was due to the company’s new HR rules.
“I was a part of their tech team for over a year now, and they laid me off on Tuesday. I got no severance due to the new HR policy,” the now-former employee told Business Today on the condition of anonymity.
A current staffer explained what this ‘new HR policy’ is.
“Until last year, Navi had 2 appraisal rounds, one each in June and December. Those who performed well were given salary hikes, and non-performers got warnings, as well as notice to improve. But very few used to get laid off. As per the latest policy, however, promotions will be given only in December, but layoffs will be carried out in both the cycles. Also, as per this policy, there will be no severance if one gets terminated in either cycle,” the staffer, who is with the admin department, explained.
Meanwhile, a member of the recruitment team claimed the top management already had plans of downsizing, and the HR rules were ‘tweaked’ to ensure that ‘not much severance’ will have to be paid. Also, not all job cuts were performance-related, the employee alleged.
Navi Technologies
The NBFC startup was founded in 2018, months after Bansal left Flipkart following the e-commerce giant’s $16 billion acquisition by Walmart. Navi, which has Ankit Agarwal as a co-founder, operates in the space of digital loans, home loans, mutual funds, health insurance, and micro-loans.
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