Less than two months after Quikr's acquisition of CommonFloor, the online classifieds firm has asked over 150 employees to leave the company according to a report in Inc42 - an online magazine dedicated to news about Indian startups.
Four people aware of the development told Inc42 CommonFloor employees are getting termination notices from the human resources department.
Quikr acquired online realty player CommonFloor in January for a reported $200 million in an all stock-deal.
According to Inc42 emails from human resources to CommonFloor employees state “there is no suitable role for your designation”.
Sources have told Inc 42 that over 60 employees have already been let go including the design team of 15, 5-10 people from the engineering team, 5 in the product team and 20-30 from the service team.
The news has seen many people resign on their own accord after the acquisition. One employee said that 'the promises (made at the time of merger) were not kept.'” the report says.
According to a source, CommonFloor’s Bangalore office in Diamond District will be shut within a month’s time.
At the time of acquisition, the Bangalore team had a strength of 650 employees with a total employee count of around 1000 nationally.
Quikr did not confirm how many employees have been fired to date. In an emailed response to Inc42, a Quikr spokesperson said;
“Bangalore will now serve as the main hub for all business functions of both Quikr and CommonFloor.
"As part of the overall integration exercise, we have been analysing all our assets and believe it is best to consolidate our physical as well as people assets based on our business needs. Together, we are highly committed to our consumers, people, partners and growing business in India.”
After publishing this news, Inc 42 says that numerous CommonFloor employees have reached out to share that an automated termination mail stating “to look out for career opportunities outside the company” was sent to them.
At the time of the acquisition, Mediama reports, the companies said they would continue to operate as separate entities. Following the merger, CommonFloor CEO Sumit Jain had assured employees in an email that they “should not worry about their job or role.”
The deal was supposed to deliver CommonFloor access to Quikr’s 30 million users and expand its scope across Quikr’s four other verticals.
Commonfloor was launched in 2007 by Sumit Jain, Lalit Mangal and Vikas Malpani; and counts Accel Partners, Tiger Global and Google Capital as investors.
QuikrHomes, launched in September 2015, allows users to search for residential, commercial or agricultural properties to either buy or rent, in various cities like Pune, Delhi, Chennai, Bangalore, Mumbai and Hyderabad.
In October 2015, Quikr made a strategic investment in Genesys International‘s venture AN Virtual Tech. In December that year, Quikr acquired real estate analytics startup Realtycompass to boost its offerings in the real estate space and also complement Quikr Homes.