April 20, 2024 21:54 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Mamata Banerjee on DD News' new logo colour: 'Shocked at the sudden saffronisation' | Love jihad is spreading: Karnataka Congress corporator, whose daughter was killed, contradicts Siddaramaiah's claims | Karnataka Congress corporator's daughter killed; CM Siddaramaiah cites 'personal reasons' | Elon Musk postpones upcoming visit to India: Reports | 'Had mangoes only three thrice, sweets 6 times in jail': Arvind Kejriwal counters ED claims in court
Swiggy terminates 380 jobs amid weak growth in food delivery business Lay off
Image Credit: Swiggy

Swiggy terminates 380 jobs amid weak growth in food delivery business

India Blooms News Service | @indiablooms | 20 Jan 2023, 11:54 pm

Bengaluru: Food aggregator and quick commerce company Swiggy has laid off 380 workers citing challenging macroeconomic conditions and a slowdown in its food delivery business, media reports said.

“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,” Sriharsha Majety, Swiggy’s CEO, wrote in an email sent to employees.

“Our overhiring is a case of poor judgment, and I should’ve done better here.”

“We’re no exception here, and have already advanced our own timelines for profitability on food delivery and Instamart,” Majety said in the email that the company made public.

“While our cash reserves allow us to be fundamentally well positioned to weather harsh circumstances, we cannot make this a crutch and must continue identifying efficiencies to secure our long-term.”

He said the food delivery business did not gather pace in line with its projections, forcing the company to "revisit our overall indirect costs to hit our profitability goals."

"While we’d already initiated actions on other indirect costs like infrastructure, office/facilities, etc, we needed to right-size our overall personnel costs also in line with the projections for the future,” he said.

The fired employees will be given a cash compensation of three to six months of salary, based on tenure and grade, including a 100 percent payout of variable pay/incentives. Further, the joining bonus and retention bonus paid out will be waived off.

“The annual vesting cliff has been waived off. We will be extending vesting to the nearest quarter from the last working date. They will also be eligible to participate in the ESOP liquidity program slated for July 2023,” Majety wrote.

Medical insurance for laid-off workers and nominated family members will last May 31, 2023 and they will get career transition support for the next three months, the company said.

Those who changed location in the previous year will get their expenses reimbursed if they get back to their past location or permanent address.

Workers will also retain their work laptops.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.