‘Very difficult decision’: Swiggy lays off hundreds of employees, shuts down meat marketplace ahead of IPO
Foodtech company Swiggy has laid off 380 employees from its 6,000-strong workforce, according to an internal e-mail shared by Swiggy CEO and co-founder Sriharsha Majety on Friday (January 20).
Through this, the company is trying to become profitable by reducing the cost before offering its IPO. Along with this, due to a continuous shortage in funding, the company has taken this big decision. With this decision, Swiggy has now joined the list of companies including Amazon, Goldman, and Microsoft, which have laid off a large number of their employees recently.
“We’re implementing a very difficult decision to reduce the size of our team as a part of a restructuring exercise. 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 employees.
- Founder – Sriharsha Majety, Nandan Reddy, Rahul Jaimini
- Headquarters – Bangalore, Karnataka, India
- Area served – 300+ cities across India
- Key people – Sriharsha Majety (CEO), Rahul Bothra (CFO), Dale Vaz (CTO)
- Revenue – Increase ₹5,705 crore (US$710 million) (FY22)
- Net income – Decrease ₹−3,629 crore (US$−450 million) (FY22)
- Owner – Prosus (33%)
- Parent – Bundl Technologies Private Limited
- Subsidiaries – SuprDaily, Dineout
The decision, which affects about 3 percent of its 6,000-strong workforce, was also communicated to employees at the town hall on January 20. It is also being said that the number of employees to be retrenched may increase further.
Swiggy will provide three months’ salary along with career transition support and six months’ health cover to the laid-off employees. The company is also offering employees the facility to have work-allocated laptops to help with their job search.
Majeti said the company will undertake a rigorous review of all its existing verticals. Along with this, the company will also close its meat marketplace. He added, “The team has done a great job but we have not been able to fit this market. From a customer’s point of view, we will continue to deliver meat through Instamart. We will continue to be in all our other verticals.”
The online food delivery platform’s loss doubled to INR 3,629 crore in FY22 as compared to INR 1,617 crore in the previous fiscal. According to the annual financial statement of the Registrar of Companies (RoC), total expenditure increased by 131 percent to INR 9,574.5 crore in FY22.
Swiggy’s revenue grew 2.2 times to INR 5,705 crore during FY22, as against INR 2,547 crore in FY21. Earlier in 2022, the food delivery platform raised $700 million led by Invesco (Investment management company) at a valuation of $10.7 billion.
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