NBFC start-up Navi Technologies, founded by Flipkart co-founder Sachin Bansal, has initiated a fresh round of layoffs, resulting in the termination of over 250 employees, according to sources. This development sheds light on the ongoing downsizing efforts within the company.
Scale and Impact of the Layoffs
Sources have confirmed that the layoffs began earlier this week and will continue until the first half of Friday. Various departments, including Tech, Product, Business, and Analytics, have been affected. Navi Technologies aims to downsize its workforce by 20%, impacting more than 250 individuals.
Changes in HR Policy
Sources have also revealed a recent change in the company’s HR policy. Previously, Navi conducted appraisal rounds in June and December, granting promotions and taking action against underperformers. However, under the revised policy, promotions will only be given in December, and layoffs will occur in both appraisal cycles. Furthermore, the new policy eliminates severance packages for employees laid off during either of these cycles.
Downsizing Plans and Performance-Based Layoffs
An employee familiar with the HR department disclosed that the top management had intended to downsize, prompting adjustments to the HR policy to minimize severance payouts. Moreover, they revealed that not all layoffs were solely based on performance reviews. In some cases, management reportedly influenced the review process to lower the scores of specific employees and subsequently justified their termination.
Navi’s Operations and Future Funding Plans
Navi Technologies is a fintech start-up operating in various domains, including digital lending, home loans, mutual funds, health insurance, and microloans. A reliable source within the company revealed plans to raise funds through debentures in the coming months, indicating Navi’s efforts to secure financial resources for future growth and stability.
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