Swiggy Likely To Lay Off Over 250 Employees In December: Report
Employees across the supply chain, operations, customer service, and tech roles will most likely be affected in Swiggy, the report said
Swiggy, the online food and grocery delivery platform, will lay off about 250 employees, nearly 3-5 per cent of its total workforce, in December, according to a report in the Economic Times (ET). If the move materialises, employees across the supply chain, operations, customer service, and tech roles will most likely be affected, the report said.
"They want a very lean team structure across functions. Sensitisation workshops for employees are planned for later this month. They have appointed a consulting firm to advise them on the restructuring...Most of the layoffs are likely to happen in tech, engineering, product roles and operations," a person aware of the matter told ET.
Swiggy told ET, "We concluded our performance cycle in October and have announced ratings and promotions at all levels. As with every cycle, we expect exits based on performance.”
A senior Swiigy executive told people about the performance-based exits recently. The company has reportedly started restructuring its teams. Moreover, to reduce the cash burn at Swiggy's instant grocery delivery platform, Instamart, its employees are being moved to other parts of the company. The company is reportedly being conservative on the expansion plans of Instamart.
Other industry experts said that the company might see more layoffs in the coming months amid low profits.
According to Jefferies, Swiggy recorded "much higher" losses at $315 million between January and June. Its rival, Zomato recorded losses of $50 million, including the losses at the company's quick delivery platform, Blinkit.
In November, Swiggy decided to shut down its Cloud kitchen brand, The Bowl Company, in Delhi and the national capital region (NCR) because of high losses.
Last week, US e-commerce giant Amazon said that it plans to lay off as many as 20,000 employees in the coming months, including distribution center workers, technology staff, and corporate executives, according to a report by Computerworld. The firm has decided to sack employees after it went on a hiring spree during the Covid pandemic.
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