OkCredit CEO fired 70 workers, helped them get jobs during 3-month notice period: 'Hats off to you'

Harsh Pokharna contrasted this with the handling of layoffs across the tech industry, criticising companies that inform employees of job losses via email.

A Bengaluru-based CEO has been widely praised for his empathetic approach to layoffs after sharing his company’s experience of letting go of 70 employees. Harsh Pokharna, CEO and founder of OkCredit, took to LinkedIn to recount how his company managed the difficult decision with transparency and care.

In his post, Pokharna reflected on the challenges his company faced, writing: "Eighteen months ago, we laid off 70 people. Here’s how it went: We were burning too much. Hired too fast. It was our mistake. And we owned it. It was one of the hardest things I’ve done as a founder. But we tried to do it the right way."

He detailed the steps taken by the company to support employees following the layoffs. The first measure was ensuring clear and direct communication. "We had a conversation with each of the 70 employees and explained why they had to be let go," he wrote.

The company provided a three-month notice period, allowing employees time to transition. Additionally, OkCredit actively assisted in job placements, helping with referrals, introductions, and job leads. Pokharna highlighted the success of this approach, stating: "Sixty-seven got placed before the notice period ended. For the three who didn’t, we gave two months’ extra salary."

The CEO contrasted this with the handling of layoffs across the tech industry, criticising companies that inform employees of job losses via email rather than through direct communication. "That’s inhuman. Yes, layoffs happen. But how you handle them says everything about your culture," he asserted.

"I know it’s tough to have these conversations, but this is what you signed up for when you became a founder. If you call someone ‘family’ while hiring them, treat them like family when letting them go too."

Pokharna’s post resonated widely on social media, drawing praise from entrepreneurs, executives, and professionals. Many commended his ethical leadership and people-first approach.

A fellow CEO lauded the move, commenting: "Respect for handling it the right way. More leaders should follow this example."

A co-founder also praised Pokharna’s actions, stating: "Such a powerful reminder of what it means to be a true leader. I respect the way you navigated this, and it's a model for all of us who aim to build a people-first culture."

Meanwhile, a startup CFO highlighted the importance of treating employees with dignity, writing:
"It's sad how many companies treat people so badly during layoffs. I think everyone deserves to be treated with dignity, especially when things are hard. That kind of respect really matters. You did great."

"Mistakes happen in business, but employees who put their trust in the CEO and the company shouldn’t have to bear the brunt. You did the right thing by supporting them in finding new opportunities. Hats off to you!" a LinkedIn user wrote.