Employees Laysoff : Mistake in hiring! 1% Club fired 15% of its employees

Laysoff News: Content creator Sharan Hegde has laid off 15 percent of the employees from 1% Club. It has been only about two years since he started this platform and he has taken this decision as part of cost-cutting.

Sharan Hegde says that due to hiring mistakes and rising expenses, he has decided to reduce the workforce. Now the company’s focus is to reduce costs through AI. Sharan Hegde is a financial content creator with more than 27 lakh followers on Instagram who helps people achieve financial freedom. He started the company in the year 2022.

‘Sharan Hegde has not gone bankrupt’

When Sharan Hegde laid off 15% of his employees in his two-year-old company, his close friends got worried. However, he wrote a long post on LinkedIn and said that he has laid off 15% employees, so many friends are sending messages asking if he is going bankrupt? On this, Sharan further said that as a financial influencer, will someone who has made his career in financial education go bankrupt himself? He clarified that the 5000 square feet office in Mumbai was built entirely from the company’s profits. Apart from this, investors have Rs 10 crore in FD accounts which are giving 8.5% yield.

Then why were there layoffs?

His note on layoffs came after an anonymous post on Reddit in which a person said that the company has laid off 40 employees, including himself. The anonymous post claimed that the company has fired half the video creators, all the content creators and almost all the graphic designers, several vice presidents and assistant vice presidents. Sharan Hegde says that 1% Club started from a bedroom with 5 interns 2 years ago and today it has around 200 employees.

He further said that needless to say, when you grow so fast, some mistakes are made regarding hiring and expenses. Sharan said that he and Raghav Gupta are very strict about their financial planning and vigilance and they are running this company without using any investor capital. Sharan Hegde has done engineering from Bangalore. Before moving to content creation and Mumbai, he worked in KPMG and PwC.

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