Swiggy is planning about making additional layoffs in light of a halt in funding. Media reports stated on Thursday that the food and grocery delivery network plans to reduce 8-10 percent of its 6,000-person workforce in order to reduce costs.
Employees in the product, engineering, and operation departments are likely to be the most impacted by the anticipated layoffs. Prior to its first public offering (IPO), which has been postponed until the second half of this year due to the underwhelming performance of tech stocks in recent months, Swiggy has stated that it intends to be operationally profitable.
Several employees were placed under a performance improvement plan (PIP) after the corporation apparently finished its performance evaluation in October 2022.
According to the report, which cited sources, Swiggy staff are under a lot of work pressure since management has been rearranging teams in order to meet targets and generate favourable unit economics before announcing the IPO.
Additionally, Indian entrepreneurs are likely to experience a financial winter amid rising global uncertainty and recessionary fears. Trading company Jefferies predicted in November that Swiggy’s rival Zomato will quickly overtake it in market dominance.
In FY22, Swiggy’s losses increased by more than twofold to Rs 3,628.90 crore. The company’s efforts to increase its gross sales, which increased by 124% to Rs 5,705 crore in FY22 from Rs 2,547 crore in FY21, were seen to be the cause of the losses.
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