Lagatar24 Desk
New Delhi, Jan 20: Online food delivery platform Swiggy has announced that it will lay off 380 employees as part of its latest layoffs process
The company has sent an email to the impacted employees informing them of its plans to remove hundreds of workers. Swiggy’s CEO Sriharsha Majety has apologised for the decision to reduce the headcounts and provided several justifications for the layoffs.
“We are 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,” said the company’s CEO.
The difficult macroeconomic conditions that Swiggy is facing are one of the main reasons for the layoffs. The company said that the growth rate for food delivery has slowed, which has led to lower profits and a revenue fall. Though, Swiggy is saying that it has sufficient cash reserves to sustain itself. The executive has also blamed ‘overhiring’ for its decision to lay off employees.
ALSO READ: Not public document: SC dismisses plea to publish chargesheets on govt websites
As per the company, the affected employees will be offered cash payout between 3-6 months, based on their tenure and grade. People will receive an assured three-month pay, 15 days of ex-gratia for every completed year of service and a balance of earned leave too. Moreover, Swiggy will provide 3 months of payment to all the affected ones and this includes variable pay or incentives.
“The joining bonus and retention bonus will also be paid out will also be waived off. The annual vesting cliff has been waived. 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,” said Swiggy.
Swiggy also plans to close its Meat marketplace as the company has not reached market maturity despite its iterations. However, the company will still offer meat delivery via Instamart.
