Dunzo Layoffs: Dunzo has reportedly conducted another round of layoffs as the firm tries to manage a cash crisis and generate capital to sustain its operations, media reports said. These job cuts bring down the overall workforce of the firm to just 50 individuals.
The company, backed by Reliance Retail, now employs staff in its core supply and marketing teams, reported Financial Express citing sources familiar with the matter. As part of the layoffs, the online delivery firm cut jobs for nearly 150 individuals, the report stated.
Notably, the company is going through a major cash crunch and is trying to cut down on costs. This downsizing comes as a part of efforts following these hurdles to generate sufficient cash flow to take care of the increasing dues such as overdue salaries for former and existing employees, in addition to outstanding vendor payments.
The firm informed the impacted employees in the latest layoff via an email on Friday that it will settle pending salaries, leave encashment, severance pay, and related dues for the staff as soon as it manages to secure the needed capital.
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The report further noted that earlier in July, the company communicated to its employees that it was about to close a transaction and expected to settle its dues within a period of 10-15 days. However, in the following emails, it kept stating that it is facing more challenges in gaining access to capital and delayed the settlement repeatedly.
Last month, on August 12, the payroll team of Dunzo informed the staff that it is facing more obstacles in securing funds and urged them to not take any legal action as that could further ‘delay the ongoing process’.
The delivery firm has raised almost $470 million to date, however, it is yet to achieve profitability. It reported a loss of Rs 1,802 crore in the 2022-23 fiscal year (FY23).