Bengaluru CEO fired 70 workers, then helped them get new jobs: 'Our mistake, we owned it'

A Bengaluru based CEO's story of laying off 70 employees is earning praise after he shared how his company handled the process. OkCredit CEO and founder Harsh Pokharna took to LinkedIn to share the story of the time his company had to let go off 70 workers due to budgets constraints.

"18 months ago, we laid off 70 people. Here’s how it went: We were burning too much. Hired too fast. It was our mistake. And we owned it. It was one of the hardest things I’ve done as a founder. But we tried to do it the right way," he wrote, detailing the company's next steps for it employees after announcing the layoffs.

Pokharna said that once they were laid off, the company had a conversation with each of the 70 employees and explained why they had to be let go. "We gave them 3 months’ notice.

Helped with referrals, intros, job leads - anything that could help. 67 got placed before the notice period ended. For the 3 who didn’t, we gave 2 months’ extra salary," he said.

Take a look at the full post here:

Comparing the situation with current layoffs across the tech market, the CEO claimed that most of those who lost their jobs didn't even receive a call and found out through emails that they were let go.

"That’s inhuman. Yes, layoffs happen. But how you handle them says everything about your culture. I know it’s tough to have these conversations, but this is what you signed up for when you became a founder. If you call someone “family” while hiring them, treat them like family when letting them go too," he highlighted.

The post resonated with many on social media who praised the CEO for his considerate actions after layoffs. "Respect for handling it the right way. More leaders should follow this example," wrote one user, another CEO.

Another co-founder also praised Pokharna's actions. "Such a powerful reminder of what it means to be a true leader. I respect the way you navigated this, and it's a model for all of us who aim to build a people-first culture," he said.

(Also read: Bengaluru CEO takes bus to work, surprised by price of ticket: 'I'm stunned')

"It's sad how many companies treat people so badly during layoffs. I think everyone deserves to be treated with dignity, especially when things are hard. That kind of respect really matters. You did great," wrote a startup CFO.