An Indian startup has reported a ₹2 crore loss and requested its employees to accept a 20-30% salary cut for two months to help manage the financial setback, according to livemint.com. The situation came to light through a Reddit post by an employee seeking advice on whether to accept the pay cut, negotiate equity, or look for other jobs.
The startup’s management proposed the pay cuts as part of a broader cost-saving measure that also includes freezing appraisals. The employee’s post sparked widespread discussion online about the fairness and implications of such measures. The company did not disclose the specific cause of the loss but indicated the financial strain required immediate action to stabilize operations, livemint.com reported.
This development highlights the challenges faced by Indian startups amid a tough economic environment. Startups often rely on employee goodwill during downturns, but salary cuts and frozen appraisals can impact morale and retention. Comparable cases have emerged in the sector as companies adjust to market pressures and funding slowdowns, underscoring the fragility of startup finances in the current climate, according to livemint.com.
The employee’s Reddit post remains active as a reference point for others in similar situations, and the startup’s next financial update is awaited to assess the impact of these measures. The company has not announced further steps beyond the two-month pay cut proposal, according to livemint.com.