The severed roles were largely related to sales and R&D, sources said. This is at least the second electric vehicle (EV) startup to cut jobs this year after Bounce laid off nearly 90% of its staff in January.
The layoff comes at a time when securing additional funding has become difficult for startups across the board amidst the US Federal Reserve sharply raising interest rates. This is forcing these new age companies to cut costs and become leaner, often shelving new projects to focus on existing lines of business.
Confirming the retrenchment, an Euler Motors spokesperson told ET in an email that the company is restructuring “to better deliver to customers as well as to investor expectations of greater efficiency in the context of changing global circumstances.”
“Our decision to restructure, however, meant that we had to part with approximately 10% of our employees from across the organization – many of whom have made invaluable contributions to our growth and success. Needless to say – we have provided appropriate severance and support and remain grateful for their contribution to the brand,” the spokesperson said.
Euler Motors had raised $60 million in funding last October led by GIC. Other investors included Moglix, Blume Ventures, Athera Venture Partners, QRG Holdings, and ADB Ventures.
The company makes electric three-wheelers and competes against established automakers like Mahindra and Mahindra and Piaggio as well as startups like Altigreen. It has sold just over 500 units of electric three-wheelers so far this year compared to nearly 4,000 units sold by Piaggio and almost 8,000 units sold by Mahindra and Mahindra, as per vehicle registration data.The company, which makes a bulk of its components in-house, has been struggling to ramp up production, according to sources. It sold just around 650 units last year against a claimed orderbook of 2,500 units, largely from e-commerce players.
“We continue to maintain year-on-year growth with a strong product orderbook, and remain steadfast in our pursuit to develop the most superior products delivering the best ROI in the categories that we operate in,” the spokesperson added.
News Source: economictimes.indiatimes.com