The Good Glamm Group is facing financial hurdles as it navigates a funding shortfall, leading to delays in salary payments for some employees. During a town hall on January 2, the management informed staff that a planned funding round had fallen through, causing the salary delay.
According to The Arc, the company clarified that most employees, excluding the top brass, will receive their salaries in installments starting from January 6.
Internal Email Offers Clarification
An internal email to employees further outlined the situation: “We want to inform you that salary disbursements will be processed between January 6 and January 31, 2025. Our goal is to ensure payments are made as soon as possible, and the HR team will provide regular updates.”
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Sources informed Inc42 that by January 2, 85% of the company’s workforce had already received their full salaries. Those earning INR 50,000 or less had their full payments processed, while higher earners received only half of their salary, with the remainder expected by the end of the month. Top-level employees, making up 15% of the company’s total workforce, will be paid last.
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More Troubles May Be Ahead
In addition to salary delays, the company is reportedly considering mass layoffs. The leadership team indicated in the town hall that a restructuring effort, including downsizing, may be on the cards to address ongoing cash flow issues. CEO and co-founder Darpan Sangvi, who was present at the meeting, outlined several strategies to secure funding, such as bringing in a strategic investor and possibly selling off one of the company’s acquired brands, including Sirona, The Mom’s Co, or Organic Harvest.
