Startup Announces Mass Layoffs — But It Was All a Marketing Stunt: ‘Deeply Regret Any Confusion’

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A beauty startup in India is under fire for a marketing initiative gone awry. 

Following an internal wellness survey, employees at YesMadam received an email stating the company “made the difficult decision to part ways with employees who indicated significant stress.” 

The email has since gone viral on social media, with A LinkedIn post of featuring the email garnering thousands of reactions and comments.

“Wow, so now employees have to stress about not showing stress? That’s next-level irony,” one person commented, while another wrote, “Never complete a survey at work, especially the ones they claim are anonymous.”

The company later addressed the layoffs with a statement. 

“No one was fired at YesMadam,” the company said. “Let us be clear: We would never take such an inhumane step.”

Mayank Arya, YesMadam’s co-founder and CEO, said the picture on LinkedIn was the first step of a marketing initiative shedding light on workplace stress and mental health.

He claimed the campaign intended to foster a healthier work culture. Arya also acknowledged the misstep and extended “heartfelt apologies for any miscommunication.” 

“I deeply regret any confusion or discomfort caused by this initiative,” Arya wrote. “There was no panic within the office, as everyone was informed about the campaign in advance.”

Karthik Srinivasan, a branding and communications consultant, told BBC News there is no place for lies in advertising.

“Exaggeration is an accepted and successful advertising strategy, where a brand uses creative license to push the limits of the truth to make a point,” he said. “But the exaggeration is so obvious or conspicuous that a consumer isn’t likely or expected to believe it.”

YesMadam markets itself as “India’s favorite home salon brand.” The company, with more than 300 employees, offers several in-home services like haircare, skincare, massages and other treatments. YesMadam was featured on a season 3 episode of Shark Tank India

Despite the online reaction, YesMadam remains committed to its original mission. 

“After recognizing the prevalence of stress among our employees through an internal survey, we introduced the ‘six-day de-stress paid leave policy’ along with complimentary spa sessions,” Arya added. “These measures were designed to address burnout and promote holistic well-being.”

“Although the campaign began on the wrong note, we hope it serves as a catalyst for driving positive change and promoting a healthier work culture across industries,” Arya concluded.

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