Online food delivery platform Swiggy to lay off 380 employees: Report
Swiggy CEO Sriharsha Majety said the company had identified several areas for improvement in the pace of execution. Pointing out that there had been some extra layers created in pockets due to iterative build-up of the different organisations, he said there was an increase in communication overhead.
Online food delivery platform Swiggy is reportedly laying off 380 employees and shutting down its meat marketplace, a move which its co-founder and chief executive officer termed as ‘difficult decision'.
In an internal email to his employees, co-founder and CEO Sriharsha Majety said the company had advanced its plans for profitability and needed to make difficult decisions to conserve cash, TechCrunch reported.
Majety said the company had identified several areas for improvement in the pace of execution. Pointing out that there had been some extra layers created in pockets due to iterative build-up of the different organisations, he said there was an increase in communication overhead leading to compromise in agility.
The CEO said the company will also shut its meat marketplace as it has not been able to hit the product market despite the iteration. He said that the affected employees will be paid a severance package of three to six months and additional days based on each year of service. Majety said the company will accelerate their vesting cliff and will provide medical insurance to them and their dependents till May.
Last year, Swiggy had raised $700 million from Invesco at a valuation of $10 billion.
With this, Swiggy joins the likes of global giants like Microsoft, Twitter, Amazon and others who have laid off employees in recent times. In November, Swiggy's main competitor Zomato had announced its decision to fire around three per cent of its workforce across various departments. According to a company spokesperson, Zomato had reported a performance-based churn of under three per cent of the workforce.
