Swiggy, an India-based food and grocery delivery decacorn, is sacking 380 employees as part of a restructuring exercise, co-founder and CEO Sriharsha Majety said in an email to staff.
Photo credit: Swiggy
“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,” Majety wrote in the email, which was reviewed by Tech in Asia.
Affected employees will get a minimum payout of three months, medical insurance cover until May 2023, reimbursement of relocation expenses, and benefits from employee stock ownership plans.
Majety cited the current macroeconomic slowdown and overhiring for the restructuring. Without going into details, he also pointed out that contrary to Swiggy’s projections, the growth rate for food delivery has slowed down. “This meant that we needed to revisit our overall indirect costs to hit our profitability goals,” he noted.
Tech in Asia has reached out to Swiggy for comments.
The SoftBank-backed company will also close down its meat marketplace as part of its cost-cutting plans. Through Meat Stores on the Swiggy app, customers got access to several meat brands such as Nandu’s, Classy Meat, and Meamo.
Despite these measures, the company will “continue to be fully committed to exploring new business opportunities.”
Swiggy directly competes with Zomato in the food delivery and quick commerce space. Valued at over US$10 billion, Swiggy raised US$700 million in January 2022.
See also: Tracking layoffs across Asia’s startup ecosystem (Updated)
Editing by Miguel Angel Cordon and Eileen C. Ang
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