Trouble continues at retail company and quick grocery delivery provider Dunzo. The Bengaluru-based company backed by Google has not been able to pay salaries to employees. According to reports, Dunzo is yet to clear the dues of the last month.
In a statement to its employees, Dunzo said it has further delayed the payment of salaries for the months of June and July. The domestic quick-grocery provider has said it will not be able to pay employees until early September. The company’s statement came after the salary was further delayed beyond the earlier deadline of July 20.
What did the company say to the employees?
“For those team members who were expecting the balance payment of their June salary during this week, we regret to inform you that there has been a delay. The pending salary for June will now be paid on September 4, 2023. In addition, the salary for July will also be paid. All team members will be paid on September 4 along with August salary,” Dunzo told employees.
“At this stage, we need to focus on streamlining our cash flows so that we can build a more sustainable business for the future. We need your support,” the company wrote in the email.
To improve its financial health, Dunzo reportedly capped the salaries of employees at Rs 75,000 per month, irrespective of their pay packages. Reportedly, Dunzo has delayed the salaries of senior employees by 50 per cent.
dunzo lay off
According to reports, the company will lay off more employees this month. The company has already laid off around 400 employees in two phases. In April, after raising $75 million in a new funding round, Dunzo laid off at least 30 percent of its workforce, about 300 employees. The company also laid off 3 percent of its workforce in January amid cost-cutting measures as it looked at team structures and network design to build efficiencies across its teams.
Also read: Dunzo to lay off 30% of its workforce amid $75M funding round
,With IANS inputs)