Clear lays off 16% of workforce, freshers hit hardest
What's the story
Bengaluru-based fintech firm Clear (formerly ClearTax) has laid off nearly 16% of its workforce in a recent downsizing round. The layoffs, which took effect on August 1, have mostly impacted freshers and recent campus hires. While the company has confirmed the job cuts, Entrackr report says that the actual figure could be as high as 20-25%, affecting around 145 employees.
Employee reactions
Layoffs impact freshers hired through campus placements
The news of the layoffs has sparked an outcry among affected employees, many of whom joined in June through Day 1 campus placements. An IIT-Guwahati graduate who joined Clear as a software engineer two months ago, expressed his disappointment on social media. "This decision felt profoundly unfair," he said. Another recent hire from IIT-BHU confirmed that all newly onboarded freshers were impacted by the decision.
Company response
Clear offers enhanced severance packages to affected employees
Responding to the backlash, Clear said the layoffs were part of an organizational restructuring exercise. "We recently undertook a broader strategic organizational restructuring, impacting around 16% of our workforce, including a small number of early-career employees," a company spokesperson said. They added that affected employees were provided with enhanced severance packages, continued health insurance and active outplacement assistance through outreach to industry partners.
Impact on interns
Rescinded job offers for interns and full-time recruits
Along with the freshers, some interns who had received full-time offers have also seen them revoked. This was confirmed by LinkedIn posts from former employees. One of them, a former Software Development Engineer at Clear, said his offer was rescinded due to "difficult business decisions." Another recent IIT-BHU hire expressed disappointment but viewed it as a temporary setback in their career journey.
Financial outlook
Layoffs come amid surge in revenue and profit
The layoffs come at a time when Clear's financial performance has improved but capital inflow remains limited. The company's revenue nearly doubled in FY24, with operating revenue rising 93% to ₹209.84 crore. Losses also narrowed by nearly 59% at ₹96.24 crore. However, Clear has not raised fresh funding since its October 2021 Series C round, according to start-up data tracker TheKredible.