Mumbai: Food Delivery Head swiggy Laying off about 350-400 employees or about 7% of its workforce Number of Employees As tech startup Try to control costs and move toward profitability, said two sources familiar with the development. He said technical teams and a section of the customer service department (especially call centres) would be most affected by the move.
this is the second round retrenchment The Bengaluru based company which is preparing to be listed on the stock exchanges. In January last year, Swiggy had cut Rs 380 jobs, joining the group of startups that have resorted to layoffs amid funding winter and pressure from investors to be financially savvy. “Swiggy wants to simplify work processes and build operational efficiency. “The layoffs are in that direction,” said a person familiar with the company’s thinking.
The rush of investor capital chasing Indian startups after the Covid-led surge in digital adoption has waned amid tough global macroeconomic conditions, as investors have become selective in terms of funding. As the ecosystem undergoes readjustment, startups across the board are looking to build more efficiently, close loss-making verticals, deploy technology to streamline systems, and do more with their budgets. Have agreed to be prudent. As many unicorn startups attempt to go public, they focus more on achieving profitability, a metric that public markets reward.
Last year, in a blog post, Swiggy co-founder and CEO Sriharsh Majeti had said that its core food delivery business was set to become profitable by March 2023, excluding employee stock option costs. Swiggy is also investing heavily in its instant commerce business Instamart, which could be quite cash-intensive. Rival Zomato reported its first quarterly profit in Q1FY24 and has maintained it for the second quarter.
Recently, big internet companies like Paytm and Flipkart have also cut the number of their employees. Responding to questions from employees at a townhall on Thursday, Flipkart said the company will lay off around 1,000 employees as part of its annual performance review process.
this is the second round retrenchment The Bengaluru based company which is preparing to be listed on the stock exchanges. In January last year, Swiggy had cut Rs 380 jobs, joining the group of startups that have resorted to layoffs amid funding winter and pressure from investors to be financially savvy. “Swiggy wants to simplify work processes and build operational efficiency. “The layoffs are in that direction,” said a person familiar with the company’s thinking.
The rush of investor capital chasing Indian startups after the Covid-led surge in digital adoption has waned amid tough global macroeconomic conditions, as investors have become selective in terms of funding. As the ecosystem undergoes readjustment, startups across the board are looking to build more efficiently, close loss-making verticals, deploy technology to streamline systems, and do more with their budgets. Have agreed to be prudent. As many unicorn startups attempt to go public, they focus more on achieving profitability, a metric that public markets reward.
Last year, in a blog post, Swiggy co-founder and CEO Sriharsh Majeti had said that its core food delivery business was set to become profitable by March 2023, excluding employee stock option costs. Swiggy is also investing heavily in its instant commerce business Instamart, which could be quite cash-intensive. Rival Zomato reported its first quarterly profit in Q1FY24 and has maintained it for the second quarter.
Recently, big internet companies like Paytm and Flipkart have also cut the number of their employees. Responding to questions from employees at a townhall on Thursday, Flipkart said the company will lay off around 1,000 employees as part of its annual performance review process.
