Home / News / India /  'Don’t be swayed by what Elon Musk...': Ashneer Grover's advise to desi founders on layoffs

Entrepreneur Ashneer Grover on 19 November has spoke about the wave of layoffs which are being taken place. 

Advising the Indian founders, Grover wrote, “you have to be ahead of the cycle - not consumed by it."

In his LinkedIn post, Grover wrote, “Founders. Never forget - business has Cycles ! You have to be ahead of the cycle - not consumed by it."

“We are going through a down cycle. Cutting costs is needed to extend runway. Firing people is fashionable - but actually optional," he wrote.

Also Read: Amid Twitter chaos, Koo to hire some employees fired by Elon Musk

Grover further went and explained the concept of real salary Vs paid salary.

Explaining it, he wrote, “In 2021, the real salary (at which markets clear) at which your employees were getting poached was higher than the salary you were paying."

Also read: WhatsApp Pay 'biggest failure' in India: Ashneer Grover trolls social media app

Further adding, he said, “In 2022 the real salary at which people will find jobs (if at all) if you let them go is lower than salaries you are paying. So if you think you will need people back - simply reduce salary by 25% (40% in case of tech employees) rather than doing mass layoffs. It’s a better solution as rehiring will be really uphill and costly. Reinstating salary is click of a button away."

Grover also advised founders to not be swayed by what Elon Musk is selling as couture. 

“Don’t be swayed by what Elon Musk is selling as couture. It does not fit your body type. None of you have bought over a business with your own money, nor do you own 100 percent. You carry the baggage of having built your team - he doesn’t - at least not in twitter. He is doing perfectly what is needed in an acquisition - not applicable to you at all," he added.

Grover ended with telling the founders to not take approvals or advice from investors or even the so called Boards.

“Whatever you do - don’t take any approvals / advice from your investors or so called Boards. Investors have never handled people. They bring capital - not labour or enterprise," he concluded.

Prior to this on 16 November, Grover had spoken about his biography book “Doglapan: The Hard Truth about Life and Start-ups" which would be out in December. He said that it is “all about the hypocrisy of life - success in failure and failure in success." 

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