Swiggy: As part of its “restructuring exercise”, food delivery platform Swiggy has laid off at least 380 employees, citing slow growth. As per reports, the affected employees will get a minimum assured payment of 3 months, which will include 100% convertible incentive.
The company also confirmed to waive the joining bonus and retention bonus paid.
In addition, the retrenched employees will get medical insurance coverage for themselves and designated family members till May 31, 2023, the company said.
swiggy is going to shut down its meat market
In addition, the company stated that it would soon discontinue its meat market as it was unable to find product-market fit despite its iterations.
Sriharsha Majety, co-founder and CEO, said in a statement, “The growth rate for food delivery has slowed compared to many peer companies globally as well as our projections. This means we have to meet our profitability targets. Need to re-look at your total indirect costs to make ends meet.” E-mail
Read also: Woman in burqa delivers goods in Swiggy delivery bag, pic viral on internet
“While we have already initiated action on other indirect costs such as infrastructure, office/facilities, etc., we also need to right-size our overall personnel costs in line with projections for the future. Our overhiring was a bad decision matter, and I should have done better here.”
Swiggy revenue loss in FY22
The online food delivery platform’s loss doubled to Rs 3,629 crore in FY22 as compared to Rs 1,617 crore in the previous fiscal.
In FY22, total expenses rose 13% to Rs 9,574.5 crore, according to the company’s annual financial statement filed with the Registrar of Companies (RoC). Meanwhile, Swiggy’s revenue grew 2.2 times from Rs 2,547 crore to Rs 5,705 crore in FY22.
(With inputs from IANS)