Flipkart co-founder Sachin Bansal’s Navi General Insurance has fired 40 employees and also reviewing the future plans of the firm. The layoffs have brought down the strength of the insurance company of 163 employees by one-fourth.
As per an Indian Express report, during a townhall, Bansal informed his team that the company is planning to relocate to Bengaluru from its Mumbai Head Office by December 31 this year. As a part of the layoff, Chief Executive Officer of the general insurance division and other senior and mid-management level officials from COCO, one of its insurance products.
Navi had acquired DHFL General Insurance from Kapil Wadhawan-led financial services group Wadhawan Group Capital (WGC) for Rs100 Cr ($14 Mn), which later named as the Navi General Insurance.
Bansal has informed the employees of Navi General Insurance that, “This was important to do at this juncture because we are thinking of new strategies for COCO. We had to do people rationalisation activity because not everybody was fitting into the future strategy that we are thinking of,” quoted Indian Express.
Besides, he assured the employees that those who were a part of the meeting will remain with the firm and its future strategies. He said that he wants the selected team who are retained to shift to Bengaluru to make a future with COCO.
The report further stated that some employees have raised concerns on the decision to move to Bengaluru, highlighting lack of insurance prospects in Bengaluru.
Bansal said, “There are vacancies at senior and middle management levels that have been created … and it is for all of you to grab that opportunity.” He added he likes to promote people from within the organisation to senior positions instead of going for external hiring.