THIS Indian company is the latest to join layoffs wave; cuts 70 percent workforce

New Delhi: In a move to restructure its staff and generate savings in order to stay competitive, GoMechanic is the latest firm to join the layoffs spree. According to a source with knowledge of the situation who spoke to TechCrunch, GoMechanic has cut off 70 percent of its workers as the Sequoia India-backed business struggles to secure money amid grave accounting concerns.

The move comes as GoMechanic, which has its headquarters in Gurgaon, has been unable to secure money for more than a year despite having reached advanced stages of discussions with a number of investors due to worries over major inaccuracies in financial reporting. According to TechCrunch, the business was in discussions to seek a round of funding early last year that was headed by Tiger Global and valued at over $1 billion. (Also Read: Samsung Republic Day Sale 2023: Get BUMPER discounts of up to 61% on THESE devices)

The insider claimed that once some inconsistency was discovered during the due diligence process, the conversations did not result in a transaction. In order to acquire a sizable round of funding, the business later negotiated with other investors, including Malaysia's Khazanah. While SoftBank was also interested in participating, Khazanah was positioned to take the lead in the round. (Also Read: Microsoft joins layoffs spree; Company plan to FIRE THOUSANDS of employees-- Read details inside)

Due to significant irregularities discovered in its records, this fresh round is no longer moving forward, according to two sources who spoke to the press on the condition of anonymity. According to the source, a recent investigation into the firm, which counts Tiger Global among its backers, revealed that several of its garages were made up, among other problems.

According to Indian news outlet The Morning Context on Tuesday, the firm with its headquarters in Gurgaon has also instructed the remaining employees to labour without pay for three months.