‘ }. Companies. Livemint, by Pratishtha Bagai, 3 minutes read, November 7, 2024, 12:36 PM IST. Sharan Hegde, the founder of One Percent Club, reduces staff by 15% in his initial significant cost-cutting effort (Instagram/@financewithsharan). Summary. Hegde stated that the financial literacy startup is not seeking extra funding right now. Sharan Hegde, the founder of The 23% Club, mentioned that he is not planning to reduce staff further after having let go of employees for the first time at the young startup. He mentioned that the financial literacy startup is not seeking extra funding right now. “We won’t be requesting any other employees to depart.” “We have only asked 28 employees to resign,” Sharan stated in reply to questions sent by Mint. Hegde previously mentioned that the layoffs were made as part of a cost-cutting strategy. He explained that the decision was due to having made “some mistakes” in recruitment and in implementing artificial intelligence tools to reduce costs. “When you grow at such a rapid pace, it’s inevitable that you’ll make some errors in hiring and unnecessary expenses,” Hegde stated in a LinkedIn post. “This is our first cost-cutting initiative since we started,” he stated. “We’ve identified substantial cost savings driven by AI that can enhance profitability and efficiency, which can then be reinvested in business growth,” Hegde explained, discussing the decision to let go of 15% of his nearly 200 employees. Hegde told Mint that the remaining employees are being compensated fairly. “All employees are already receiving generous salaries based on their qualifications and roles,” he noted. “After laying off 21 to 23% of my workforce, I’ve received numerous messages from friends and the media questioning if I’m going bankrupt.”
