US Man Quits AI Startup Founded By IIT Graduates On Day 1, Cites Toxic Culture: "Red Flags Everywhere"

In a tweet, Jared Steele said he quit after just one day, citing false compensation promises, questionable management practices, and restrictive leave policies.

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e claims the work environment was toxic, and there were discrepancies in compensation and job title.
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  • Giga, an AI startup by IIT Kharagpur alumni, faces toxic work culture claims
  • Ex-employee Jared Steele cited mandatory 12-hour shifts, 7 days a week
  • Steele quit after one day due to broken promises and disrespectful behavior
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Giga, an AI startup founded by two IIT Kharagpur alumni, Varun Vummadi and Esha Manideep, is facing allegations of a toxic work culture, with an ex-employee claiming the company demanded 12-hour shifts, 7 days a week. Jared Steele, who was hired to lead demand generation, claimed the work environment was the "most toxic" he had experienced, citing a lack of work-life balance, mandatory 12-hour shifts daily, and promised compensation that did not materialise. He quit after just one day. 

Steele, who had driven 26 hours across the country to start the job, described quitting on day one as the "easiest decision" of his life.

See the tweet here:

According to Steele's account shared online, the issues included:

  • Unreasonable Hours: He claimed employees were expected to work 12-hour shifts, seven days a week, with little to no time off.
  • Broken Promises: Steele mentioned he had informed the company about needing time off for two weddings before joining, which was initially accepted. After signing the contract, however, he was told the leaves were no longer allowed.
  • Disrespectful Behaviour: The final incident that led to his immediate resignation was when, on his first day, the founder, Varun Vummadi, snubbed his extended hand and did not acknowledge him or say "welcome to the team".
  • Disturbing Comments: He also shared disturbing comments allegedly made by the company, including plans to spend $100k on "illegal stuff" and sacrificing a goat in India when they hit $10m ARR.

The story has gone viral on social media, sparking debate about startup culture and work-life balance. 

The allegations surfaced just days after Giga announced it had raised $61 million in Series A funding. The company has not yet issued an official response to the claims.

Notably, Giga develops voice-based AI systems that can manage real-time conversations for large enterprises. Interestingly, both founders prioritised their startup over lucrative offers - Esha turned down a $150,000 job, while Varun chose Giga over a Stanford PhD and a $525,000 quant trader role.

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