Dukaan, a popular e-commerce platform, has announced a major decision, sending shockwaves through the industry. The startup has decided to lay off a staggering 90 percent of its staff. The reason is, the startup is going to focus on profitability and the integration of an advanced AI bot.
Summit Shah, CEO & founder, Dukaan, took to Twitter, and said, “We had to lay off 90 percent of our support team because of this AI chatbot. Tough? Yes. Necessary? Absolutely. Given the state of the economy, startups are prioritizing “profitability” over striving to become “unicorns”, and so are we.”
The decision to downsize the workforce comes as a surprise to many, considering Dukaan had given several jobs.
Dukaan is going to replace the majority of its human workforce with an AI bot, which will be designed to handle various tasks such as customer support, inventory management, and data analysis. By relying on automation, they believe that they can streamline operations, reduce costs, and ultimately increase profitability.
The integration of AI technology may offer several advantages; however, this decision will impact the affected employees and their livelihoods. Dukaan has further assured that it will provide support and assistance to those who have been let go. The laid-off employees will receive severance packages and potential opportunities for retraining and relocation within the company.
As the e-commerce sector continues to evolve, Dukaan’s decision to prioritize profitability and invest in AI can also serve as a learning for other companies who are looking to stay ahead in the digital world.