Specialty coffee and food brand ‘Third Wave Coffee,’ backed by prominent names such as Zerodha co-founder Nikhil Kamath, Gaurav Munjal, and Roman Saini of Unacademy, has reportedly undertaken a significant workforce reduction, impacting approximately 100-120 employees. The decision to lay off employees was communicated without written notice, with in-person meetings at Third Wave’s office, according to sources familiar with the matter.
This development comes several months after Third Wave Coffee secured $35 million in its Series C funding round, led by private equity firm Creaegis, Westbridge Capital, and Sujeet Kumar of Udaan, as reported by Moneycontrol. Despite recent funding, the company has opted for a restructuring strategy that includes letting go of employees across various departments, including finance, tech, marketing, business development, and app teams.
According to a report, employees were informed about the headcount reduction during in-person meetings where the head of human resources and the founder spoke for 10-15 minutes, conveying that their roles were no longer required in the restructured organization. The layoffs have been ongoing for the past two days, with indications of another round scheduled for December 15. Senior leaders within the company have also been impacted by the decision.
In response to the workforce reduction, Third Wave has committed to paying affected employees two months’ salary if they choose to leave immediately. Alternatively, employees have been given the option to continue working until mid-February if they wish to do so.
The timing of these layoffs raises questions as Third Wave Coffee had recently announced plans to expand its offline presence across the country. Established in 2017 by Sushant Goel, Ayush Bathwal, and Anirudh Sharma, Third Wave Coffee Roasters has quickly grown to operate over 100 stores, reflecting the robust growth in India’s coffee and food industry. The brand competes with several players in the market, including Slay Coffee, Blue Tokai, Sleepy Owl Coffee, Hatti Kaapi, and traditional chains like Cafe Coffee Day.
