GoMechanic Layoff: Go-Mechanic will take out 70% of its employees, co-founder said – this is the reason for layoff.

Car repairing service company Go Mechanic has announced major layoffs. The company has said that it will lay off 70% of its personnel. The layoffs are believed to be due to failure to secure funds and serious accounting issues.

In his LinkedIn post on Wednesday, Amit Bhasin, co-founder of GoMechanic, said that the Sequoia India-backed company made serious mistakes in its decision-making. We chose the path of development at all costs. He said that the company has decided to restructure the business for its capital resolution.

Let us tell you that the headquarter of Go-Mechanic is in Gurgaon. The startup was established in the year 2016 with an aim to simplify the facilities of car repairing. The company has been unable to secure funds despite discussions with several investors over the past few days. Last year, there were reports that the startup was in talks with investors led by Tiger Global to raise funds at a valuation of $1 billion.

Bhasin said that we take full responsibility for this difficult situation. We want to reorganize the business, so we are forced to take serious decisions. This decision of retrenchment is painful. About 70% people will have to go back. He said that a third party firm is auditing the business. “Go-Mechanic is working on the most accurate plan to come out of the difficult situation with the support of its well-wishers,” he added.