Clear Lays Off 16% of Workforce, New Hires Hit Hardest
Bengaluru-based fintech firm Clear, formerly known as ClearTax, has laid off at least 16% of its staff in a recent restructuring exercise. The move has sparked significant distress and criticism, as the job cuts have disproportionately affected fresh graduates and recent campus hires, many of whom had only been with the company for a matter of weeks.
Shock for New Employees
The layoffs, which took effect on August 1, have left many young engineers who joined the company in June feeling blindsided. Several affected employees, including graduates from top IITs, took to social media to express their frustration. They shared stories of turning down other job offers after accepting Clear's on "Day 1" of campus placements, only to be let go before their first performance reviews. One former employee described the decision as "profoundly unfair," a sentiment echoed by many others who felt they weren't given a real chance to prove their value. The company has also reportedly revoked full-time offers that were made to some interns.
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Company Cites Restructuring Amidst Mixed Financials
Clear has attributed the layoffs to a "broader strategic organisational restructuring." A company spokesperson confirmed that around 16% of the workforce was impacted and stated that affected employees would receive enhanced severance packages, continued health insurance, and outplacement assistance.
The decision comes at a curious time for the Y Combinator-backed startup. While its operating revenue nearly doubled in the last financial year and its losses narrowed significantly, the company has not raised any new funding since its Series C round in October 2021. This has created a situation where the company is growing financially but is also making difficult decisions about its workforce, leaving its newest and most vulnerable employees to bear the brunt.
