Swiggy is an Indian online food ordering and delivery platform. Founded in July 2014, Swiggy is based in Bangalore and operates in 500 Indian cities as of September 2021. Besides food delivery, Swiggy also provides on-demand grocery deliveries under the name Instamart, and a same-day package delivery service called Swiggy Genie.
After multiple reports suggested food delivery giant Swiggy might fire as much as 10% of its staff, the decacorn on Friday (January 20) said that it is firing 380 employees as part of a restructuring exercise to cut costs.
Swiggy layoffs were announcement was made during a town hall meeting on Friday. Meanwhile, sources told Inc42 that the impacted employees lost access to organization apps and software following the announcement.
The food and grocery delivery company is the latest to join the swelling ranks of startups such as ShareChat, Dunzo, Rebel Foods, Hubilo, Ola, and Cashfree to announce layoffs in recent weeks as the sector weathers a late-stage funding crunch.
3-6 months’ salary compensation
Swiggy employs about 6,000 people and the layoffs will affect about 6% of its total workforce. Swiggy recently launched several new units, including a premium grocery delivery service
Majety said that the impacted employees will get compensation of three- to six-months salary, depending on their tenure, with a guaranteed payout of at least three months’ wages.
“In this process, we will be bidding goodbye to 380 talented Swiggsters. 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,” Swiggy founder and CEO Sriharsha Majety said in an email to the employees.
Majesty added that the growth in the food delivery segment has slowed down compared to expectations, which has resulted in Swiggy having to revisit its profitability goals.
Who is owner of Swiggy?
Swiggy is an Indian online food ordering and delivery platform. Founded in July 2014, Swiggy is based in Bangalore and operates in 500 Indian cities as of September 2021.