In a reorganisation effort, Virgio, the fashion company founded by former Myntra CEO Amar Nagaram, laid off 20 employees, or 33 per cent of its personnel, according to sources with knowledge of the situation.
The cost-cutting effort by Virgio had the biggest impact on senior staff members. Only a few weeks have passed since Virgio changed its business model from one of fast fashion to one of sustainable clothing.
“Virgio realised that it had made some hiring mistakes and wanted to correct it as early as it could. The ones being let go were not bad talent, just that they weren’t good enough for the phase Virgio is in currently,” one of the persons cited above told Moneycontrol.
Virgio has rearranged its upper deck in addition to making the necessary layoffs, and it is employing more workers to fill open jobs.
Rajesh Narkar has been replaced as the head of sourcing and design for Virgio by Prachi Sharma, who has previously worked for companies including Calvin Klein and Tommy Hilfiger.
Sachin Tandon has been replaced as the marketing director for Virgio by Hansa Nigam, who formerly oversaw marketing for OnePlus Nord in India.
Suyash Motarwar, who formerly worked for Flipkart and PharmEasy, has taken over Nishant Khurana's position as head of Virgio's IT.
Neelesh Soni has been replaced as head of product by Ashish Ranka, a former employee of CoinSwitch and Flipkart.
All four of the departing executives—Narkar, Tandon, Khurana, and Soni—previously served as employees of Myntra while Nagaram served as CEO of the Walmart-owned business.
According to a source familiar with the company's objectives, "Virgio aims to have a team which is much younger and likes to hustle rather than having a board room-like set up," they told Moneycontrol.
According to Nagaram, Virgio raised $37 million in December of last year from Accel, Prosus, Alpha Wave, and other investors and has a three-year cash runway.
Along with the institutional investors listed, Virgio is also supported by a number of angel investors, such as Swiggy co-founder Sriharsha Majety, Cult.fit co-founder Mukesh Bansal, Cred founder Kunal Shah, Flipkart co-founder Binny Bansal, Ola co-founder Bhavish Aggarwal, Meesho co-founder Vidit Aatrey, and Cred founder Kunal Shah.