TL;DR:
- Bengaluru-based AI tech support startup Saarthi.ai succumbs to “investor pressure” and fires employees in batches to achieve profitability.
- Allegations arise that the company has withheld the salaries of several employees since March 2023.
- Founder and CEO Vishwa Nath Jha acknowledges the restructuring of the team to automate low-level cognitive skills due to investor pressure.
- The exact number of affected employees remains unverified.
- Saarthi.ai assures that the full and final settlement for early batches of employees has been cleared, while others will be settled within 90 days.
- An employee’s social media post reveals concerns that senior management is still getting paid while others are not.
- Similar challenges are faced by other startups in the tech industry, like delayed salaries at Dunzo and a shift to AI chatbots at Dukaan.
Main AI News:
Bengaluru-based AI tech support startup Saarthi.ai has found itself embroiled in a challenging situation as it grapples with the weight of “investor pressure” in its quest for profitability. In a move that has sent shockwaves through the company, Saarthi.ai has resorted to firing certain employees in batches, while also allegedly withholding the salaries of numerous others since March 2023. The startup’s actions have triggered a wave of concern and speculation, prompting one employee to take to social media to shed light on the turmoil unfolding within the organization.
While the exact number of employees impacted by these measures remains unconfirmed and subject to scrutiny, founder and CEO Vishwa Nath Jha addressed the situation in a bid to provide some clarity. He candidly acknowledged that the company had to take decisive action in response to the mounting “investor pressure” to achieve profitability. The restructuring of the team, resulting in the dismissal of several members, was necessitated by the need to automate certain low-level professional cognitive skills within the workforce.
However, the situation takes a troubling turn as allegations arise that Saarthi.ai has been holding back salaries, leaving some staff members in financial distress. Responding to these concerns, Vishwa Nath Jha assured that the full and final settlement for the early batches of employees who were let go has already been processed. For those remaining, the company has pledged to clear their dues within a stipulated timeframe, adhering to the company’s policy. Additionally, Jha revealed that they are actively engaging with investors to seek a resolution for this distressing “event.”
Amidst the ongoing storm at Saarthi.ai, the company has found itself under scrutiny, with rumors and revelations causing further unease. The startup social media platform Grapevine saw an employee’s post accusing Saarthi.ai of withholding salaries from its workforce since March 2023. The concerning claim asserted that despite promises of impending payment, the company’s employees, totaling more than 140 individuals, continue to wait in uncertainty while the senior management seems untouched by the crisis.
The anxiety amongst employees is palpable, with some fearing the repercussions of speaking out against the situation, concerned that doing so might jeopardize their chances of receiving their long-awaited salaries.
The developments at Saarthi.ai are reflective of the wider challenges faced by startups in the fast-paced world of technology and business. Dunzo, a quick commerce logistics startup, has also faced its share of struggles, delaying employee salaries for June and July until September 2023. Similarly, Dukaan CEO Suumit Shah has recently turned to AI chatbot Lina, replacing 90 percent of the company’s customer care staff, seeking to bolster profitability in an increasingly competitive market.
Conclusion:
Saarthi.ai’s struggles with “investor pressure” and employee discontent reflect the challenges faced by startups in the competitive tech market. Such actions may impact the company’s reputation and could signal a need for startups to carefully balance profitability goals with employee welfare and investor expectations. The ripple effect of these developments may prompt the market to reevaluate the dynamics between startups, investors, and workforce management to ensure sustainable growth and success.
