Swiggy, an online food delivery service is expected to fire up to 10% of its workforce, or roughly 600 staff following a thorough performance evaluation that was completed late in 2022, amid global uncertainty and recession fears.
According to sources who spoke with IANS, Swiggy's impending layoffs will probably have an effect on the company's product, engineering, and operation divisions. In order to decrease cash burn, Swiggy's quick commerce delivery service Instamart is also anticipated to be impacted by the impending layoffs.
The company did not immediately respond to an IANS query on upcoming layoffs. According to earlier reports that appeared in December, Swiggy may begin firing more than 250 workers in January, or up to 5% of its staff.
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However, sources claim that after the performance cycle's conclusion in October, the number of laid-off workers would increase even further. The business has just about 6,000 employees.
The difficult macroeconomic circumstances Swiggy is experiencing are one of the main reasons given for the layoff. The business disclosed that lower earnings and lower income have been the outcome of a slowdown in the growth rate of food delivery.
Swiggy claims, however, that it has sufficient cash on hand to cover its expenses. The executive also cited "overhiring" as a reason for its hiring excess.
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Depending on their duration and grade, the sacked employees will get a monetary settlement equal to three to six months of their wages. This comprises a complete payment of incentives and variable pay. There will be no payment of the joining bonus or retention bonus.
In an earlier statement, Swiggy had said there were no layoffs and with every performance cycle, "we expect exits based on performance".The online food delivery platform's losses doubled to Rs 3,629 crore in FY22 compared to Rs 1,617 crore in the last fiscal year.
