Lay off Swiggy terminates 380 jobs amid weak growth in food delivery business
Bengaluru: Food aggregator and quick commerce company Swiggy has laid off 380 workers citing challenging macroeconomic conditions and a slowdown in its food delivery business, media reports said.
“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,” Sriharsha Majety, Swiggy’s CEO, wrote in an email sent to employees.
“Our overhiring is a case of poor judgment, and I should’ve done better here.”
“We’re no exception here, and have already advanced our own timelines for profitability on food delivery and Instamart,” Majety said in the email that the company made public.
“While our cash reserves allow us to be fundamentally well positioned to weather harsh circumstances, we cannot make this a crutch and must continue identifying efficiencies to secure our long-term.”
He said the food delivery business did not gather pace in line with its projections, forcing the company to "revisit our overall indirect costs to hit our profitability goals."
"While we’d already initiated actions on other indirect costs like infrastructure, office/facilities, etc, we needed to right-size our overall personnel costs also in line with the projections for the future,” he said.
The fired employees will be given a cash compensation of three to six months of salary, based on tenure and grade, including a 100 percent payout of variable pay/incentives. Further, the joining bonus and retention bonus paid out will be waived off.
“The annual vesting cliff has been waived off. We will be extending vesting to the nearest quarter from the last working date. They will also be eligible to participate in the ESOP liquidity program slated for July 2023,” Majety wrote.
Medical insurance for laid-off workers and nominated family members will last May 31, 2023 and they will get career transition support for the next three months, the company said.
Those who changed location in the previous year will get their expenses reimbursed if they get back to their past location or permanent address.
Workers will also retain their work laptops.
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