Proptech startup Rentilium has implemented layoffs following the discovery of an internal financial issue. The job cuts have affected a significant portion of the company's workforce, leading to concerns about delayed salaries and payouts.
What happened
Rentilium initiated layoffs over the past month after an internal financial irregularity surfaced. Employees were informed with little notice that they were not to return to work. There are reports that some employees were encouraged to resign.
How many employees affected
The exact number of employees affected is not clear. Employee estimates suggest that more than half of the company’s workforce has been impacted. The company maintains that the number of exits is lower.
Why layoffs happened
The layoffs are attributed to corrective action following a forgery-related issue linked to sales operations. This incident is believed to have strained finances, prompting cost-cutting measures.
Company background
Rentilium is a proptech startup operating in India. The company has experienced rapid growth, with a significant number of early-career professionals among its employees.
Industry impact
This situation reflects a broader trend in India’s startup ecosystem, where financial pressures and governance challenges are driving layoffs, often affecting younger employees.
What's next
Impacted employees have been told they will receive two months’ salary as severance, though some workers have reported existing delays in wage payments. Management has stated that separation terms will follow company policies, including notice period compensation.
Source: hrkatha.com