Acko Insurance lays off 45-50 employees; seniors take up to 70% pay cut: Report

As per news report, Acko, the insurance technology startup has fired 45-50 employees out of its 480-500 workforce. This comes at the moment when the entire world is reeling under the COVID-19 pandemic and forcing the startup entrepreneurs to cut down on cost and extend their runway to keep their companies afloat.

“The layoffs are mostly across operations and marketing functions. Engineering, underwriting and other divisions will not see any job cuts,” said one of the sources on condition of anonymity. “The company has taken the call after seeking advice from investors.”

Sources have also said that the senior employees of the company have volunteered to take pay cuts.  Confirming the development Acko Chief Executive Varun Dua said that 45 employees will be impacted while the leadership has taken salary cuts ranging from 50-70%.

“Some business lines have been impacted and we don’t see them recovering for a long time,” said Dua. “We’ve been forced to rationalise in those areas and consolidate a few teams and roles. We are ensuring that every type of support is extended to our impacted colleagues including continuing insurance for them and their families.”

He also said that no further trimming of teams would be required.