After Zomato, Swiggy may lay off over 250 employees or up to 5 per cent of its workforce from this month. The online food delivery platform told IANS on Thursday that it has not laid off any employees so far and did not comment on the layoff figure.
“There have been no layoffs in Swiggy. We ended our performance cycle in October and announced ratings and promotions at all levels. As is the case with every cycle, we expect the exit to be based on performance,” a Swiggy spokesperson said in a statement. The Economic Times was first to report on the Swiggy layoffs.
The upcoming layoffs will also affect Swiggy’s instant commerce delivery service Instamart to reduce cash burn.
Last month, global brokerage firm Jefferies said that Swiggy was rapidly losing market share to its rival Zomato despite offering huge discounts.
Citing financial reports from Swiggy investor Prosus, Jefferies said the gross value of Swiggy’s food delivery business was $1.3 billion in the January-June period this year.
Zomato logged a gross order volume of $1.6 billion during the same period.
Zomato said last month that it plans to lay off around 3 per cent of its workforce in a bid to cut costs and become profitable.
Swiggy narrowed its consolidated loss in FY20 by 58.7 per cent.
The food aggregator posted a loss of Rs 1,616.9 crore in FY21 as compared to a loss of Rs 3,920.4 crore in FY20.
However, its total revenue declined to Rs 2,675.9 crore in FY2011 from Rs 3,727.7 crore in FY2010.
In May this year, Swiggy acquired Dineout, a dining out and restaurant tech platform, for an undisclosed amount.
According to sources, the size of the acquisition was around $200 million.
Earlier this year, the food delivery platform raised $700 million led by Invesco at a valuation of $10.7 billion.
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