The Chennai-based Software-as-a-Service provider Chargebee has laid off 10 per cent of its employees citing external factors. Around 140 employees have been affected across teams and geographies, including India, said a company statement.
Co-Founder & CEO Krish Subramanian, who is based in the Netherlands, in a social post said, the difficult decision was driven by external market forces as well as the company’s need to address the operational debt accumulated in the last few years. “We have made every effort to offer severance, equity and job transition support to ease some of the stress caused by these changes.”
At the start of the second quarter, macro economic factors began impacting public companies and the financing environment. The company changed its hiring plan to align with priorities and started implementing strict fiscal discipline to reorient the company towards long-term sustainability. Since then, the global economic environment has continued to be uncertain, but it is clear that this new reality will require the company to move towards profitability at an accelerated pace, he said.
“Our years in high-growth mode have created operational needs across the company, which has impacted our ability to execute. Facing a growing gap between our revenue and spend, we have been reducing expenses across areas including tools, consulting and contractors. While the scaling decisions were in our control and responsibility, the economic situation and lack of visibility into the future, has made it harder for everyone. This decision was not made lightly and we will do our best to support our team members who are impacted today,” he said.
The company has offered the employees who have been laid off three months pay; three months of extended medical benefits; outplacement career services, that includes networking assistance, and an extension of time to exercise stock options under the stock incentive plan.
The global SaaS market is still forecasted to grow significantly and Chargebee is well capitalised to grow along with it, he said.
“We wish our former colleagues success and remain committed to the success of our customers and partners around the globe,” the statement said.
So far, Chargebee has raised $468.2 million across eight rounds of funding. This includes $250 million led by Sequoia Capital India and Tiger Global Management in February.