Swiggy Plans To Cut 350-400 Jobs Ahead Of IPO

The job cuts are expected to affect roles in technology, call centres, and corporate departments, with the layoffs expected to take place gradually over the next few weeks

This update from the company came at a crucial time when Swiggy is preparing for its IPO ( Image Source :Getty )

The food and grocery delivery platform Swiggy is reportedly gearing up to lay off around 400 employees across several verticals as the firm prepares for an initial public offering. In an effort of organisational streamlining and operational efficiency, the company is anticipated to trim approximately 350 to 400 jobs, according to a news agency PTI report.

The job cuts are expected to affect roles in technology, call centres, and corporate departments, with the layoffs expected to take place gradually over the next few weeks. 

Swiggy is yet to comment on this report. 

This update from the company came at a crucial time when Swiggy is preparing for its IPO. "Swiggy has been working on simplifying work processes and building operational efficiencies," PTI quoted a source aware of the matter.

Swiggy's total headcount is estimated to be approximately 6,000 at present.

Swiggy follows the lead of prominent internet companies, such as digital payments firm Paytm and e-commerce giant Flipkart, in restructuring teams to reduce costs amid an extended downturn in the technology sector.

The prominent food delivery player also operates in quick commerce firm Instamart, which previously underwent a company-wide restructuring in January 2023. This restructuring, prompted by decelerating growth in its food delivery segment, led to the layoff of 380 employees.

Meanwhile, despite the relative stability in Swiggy's food delivery business, the company continues to incur expenditures on its rapidly expanding grocery service, Instamart. Prosus, Swiggy's largest shareholder, reports that the core food business experienced a 17 per cent growth in gross merchandise value (GMV) to reach $1.43 billion in the six months ending on September 30, 2023, while Instamart, the quick-commerce segment, witnessed a substantial 63 per cent increase in GMV.

The urgency to achieve profitability has increased for Swiggy as the company gears up for its public listing later this year. The plan is to submit its draft initial public offering (IPO) papers by the conclusion of the current fiscal year, although there is a possibility of a slight adjustment to this timeline.