Swiggy has laid off 380 employees from its workforce of 6000, citing challenging microeconomic conditions and a slowdown in the growth of its food delivery system.
Swiggy lays off 380 employees
Excerpts of the mail written by Swiggy’s CEO Sriharsha Majety
“This has been an extremely difficult decision taken after exploring all available options, and I’m extremely sorry to all of you for having to go through with this,”
He further wrote:
“Our overhiring is a case of poor judgement, and I should’ve done better here.”
Swiggy is planning an initial public offering (IPO) and is the latest startup to lay off workers as its funding dried out.
E-mail made public by company stated:
“We’re no exception here, and have already advanced our own timelines for profitability on food delivery and Instamart,”
Also stated
“While we’d already initiated actions on other indirect costs like infrastructure, office/facilities, etc, we needed to right-size our overall personnel costs also in line with the projections for the future,”
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Swiggy plans Initial Public Offer (IPO) as its funding dries down, forced to lay off employees
Swiggy will pay laid-off employees three to six months of salary, depending on tenure and grade. It includes a full payout of variable pay and incentives. It will, however, waive the joining and retention bonuses.
Majety wrote
“The annual vesting cliff has been waived off. We will be extending vesting to the nearest quarter from the last working date. They will also be eligible to participate in the ESOP liquidity program slated for July 2023,”
Laid-off workers will receive career transition assistance for the next three months, and their Medical Insurance, which covers nominated family members, will expire on May 31, 2023.
Employees who were laid off last year and relocated will have their expenses reimbursed if they return to their previous location or permanent address, and they will keep their work laptops.
Meat Market shut
Swiggy will also close its meat marketplace but will continue to deliver meat to customers via Instamart:
“Effective very soon, we will be shutting down our meat marketplace. While the team has done exceptionally well with solid inputs, we haven’t hit product market fit here despite our iterations,”
Swiggy’s last performance review was in October 2022, after which several employees were placed on a performance improvement plan (PIP)
Swiggy, a decacorn company, denied reports that it would lay off 250 employees last month. However, in the previous year’s results, its reported losses had increased 2.24 times to Rs 3,628.9 crore in FY22 from Rs 1.616.9 crore in FY21, owing to a 227 percent increase in costs.
Expenses were Rs 9,748.7 crore in FY22, up from Rs 4,292,8 crore the previous year. Swiggy’s revenue totaled Rs 5,704.9 crore, a little more than a twofold increase over the previous fiscal year.
Indian Startup’s face the heat of Market downturn and are on Lay-off spree
• Food delivery firm Zomato in November laid off 3 per cent of its workforce of 3,800
• Car repair start-up GoMechanic laid off 70 percent of its workforce
• Google backed firms Mohalla Tech Pvt Ltd, the parent company of homegrown video-sharing platforms ShareChat and Moj Quick Commerce company Dunzo laid off 20 percent and 3 percent of their employees
• Softbank backed cab aggregator Ola laid off 200 employees
• Edtech start-up LEAD School fired 60 employees after sacking 100 in August 2022
• Tiger backed Moglix
• Voice Automation start-up Skit.ai
• Sequoia backed cloud kitchen unicorn Rebel Foods
• Unacademy owned Relevel
Also Read: Supreme Court rejects Google’s request for Rs. 1337 crore penalties to be stayed
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