CosmicTaco

The 1% Club Cuts 15% Workforce Amid Rapid AI Advancements

CosmicTaco · 2024-11-07T10:21:08.790405+05:30

- The 1% Club, a financial edtech platform, has laid off 15% of its workforce as part of a cost-cutting exercise. - The layoffs were attributed to mistakes in hiring and redundant expenses, as well as AI-led automation. - Despite the layoffs, the company is currently clocking nearly $8 Mn in annualised revenue with an EBITDA of 35-40%. - The company, founded in 2022, offers educational resources, mentorship, entrepreneurial opportunities and networking avenues to its paid members. - The layoffs come at a time when the Indian startup ecosystem is grappling with a capital crunch, leading many companies to cut costs and streamline operations. Source: [Inc42](https://inc42.com/buzz/sharan-hegdes-the-1-club-fires-15-workforce/)

The 1% Club, a financial edtech platform, has laid off 15% of its workforce as part of a cost-cutting exercise.
The layoffs were attributed to mistakes in hiring and redundant expenses, as well as AI-led automation.
Despite the layoffs, the company is currently clocking nearly $8 Mn in annualised revenue with an EBITDA of 35-40%.
The company, founded in 2022, offers educational resources, mentorship, entrepreneurial opportunities and networking avenues to its paid members.
The layoffs come at a time when the Indian startup ecosystem is grappling with a capital crunch, leading many companies to cut costs and streamline operations.

Source: Inc42