YesMadam Laid Off Hundreds of Workers After They Complained About Stress at Work

Nitin Konde, Varun Bhardwaj

Dec 11, 2024 — 3 min read

YesMadam Lays Off Hundreds After Stress Complaints

Yes, Madam is currently experiencing online backlash for purportedly terminating over 100 employees who reported experiencing increased work-related stress during a mental health survey conducted by the organisation. Anushka Dutta, a former copywriter at Yes Madam, vented her annoyance on LinkedIn, writing, "What's going on at Yes Madam? You randomly survey us first, and then you fire us overnight because we're stressed. Not only that, but 100 other people have also been let go. Additionally, Dutta sent a screenshot of the email the company's human resources (HR) department issued regarding the layoffs.

The email shockingly claims that the terminations were made in order to keep workers from working under pressure. As an organisation dedicated to creating a safe and encouraging workplace, it has given considerable thought to the suggestions. The email stated that the company had taken the difficult decision to fire individuals who expressed a great deal of stress in order to make sure that nobody was left feeling overwhelmed at work.

Company Received Strong Criticism Online

After receiving more than 6,400 likes and 1,300 comments, these LinkedIn posts swiftly gained widespread attention. Yes, Madam, was criticised in the majority of the comments and new posts, which described the situation as "terribly stressful and (a) disturbing news."

Furthermore, some users referred to the widespread layoffs as "unethical" and demanded that the nation's labour rules be strengthened. Some people, however, were quick to doubt the incident's veracity and speculate that it might be a marketing ploy. If this were a publicity trick, a netizen said the corporation had "literally stooped low."

Nevertheless, this is not the first instance in which Yes Madam has encountered turbulent waters. Due to a server-side setup error, the firm was criticised last year for allegedly disclosing the private information of its gig workers and clients.

What MediBuddy and CII Survey Reveal About Mental State of Working Class?

The development coincides with other data indicating that Indian workers are experiencing significant levels of stress. About 62% of Indian workers suffer from work-related burnout, which is much higher than the global average of 20%, per a survey by MediBuddy and the Confederation of Indian Industries (CII). According to a different World Health Organisation (WHO) report, 15% of working-age persons suffer from anxiety disorders, and over half of the world's population is currently employed.

YesMadam’s Financial Dynamics

Yes Madam is a home-based salon startup that was founded in 2016 by twins Aditya and Mayank Arya. BigStylist, GetLook, Biguine India, Belita, ZapLuk, MakeO, and Urban Company are its competitors. Aman Gupta, Vineeta Singh, Peyush Bansal, and Ritesh Agarwal, four investors on the popular TV show Shark Tank India, agreed to invest INR 1.5 Cr in the home salon firm in February. Regarding finances, Yes Madam recorded operational revenue of INR 27.04 Cr for the fiscal year 2022–2023 (FY23), which was over 26% more than INR 21.48 Cr for the same period last year. The Delhi NCR-based business previously told Inc42 that its FY24 sales were INR 45 Cr. In contrast, losses in the fiscal year under review increased by just 3% year over year (YoY) to INR 6.36 Cr from INR 6.15 Cr in FY22.