After Zomato made its decision to lay-off 13 percent employees last week, Swiggy has now announced a similar cost-cutting measure. Sriharsha Majety, the co-founder and CEO of the platform, has informed of the company’s decision to let go of nearly 1100 employees. “Today is one of the saddest days for Swiggy as we have to go through an unfortunate downsizing exercise,” said Majety.
Citing the ongoing COVID-19 pandemic as the reason, Majety said that the company has been forced to take a harder look at the cost base and preparedness of the organization for the road ahead as nobody is aware of how long the air of uncertainty around the pandemic will last.
“We also need to build a much leaner org and reduce costs to be able to withstand any further risks from the uncertainty. We will have to reduce our expenses such that we can achieve profitability with a smaller order volume than hitherto planned. This will be done keeping in mind already identified efficiencies, along with additional reductions in teams and initiatives that will have lower activity because of Covid,” said Majety in the blog.
The company will part with nearly 1100 employees panning across grades and functions in the cities and head office over the next few days. “This is easily the hardest and longest deliberated decision the management team and I have been faced with over recent times,” added Majety. The HR team along with the line manager will have a one-on-one conversation with impacted employees over the next few days.
The laid-off employees will receive the following support from the company:
- 3 months of salary irrespective of their notice period or tenure.
- For every year the employee was associated with the company, an extra month of ex-gratia that amounts to 3-8 months of salary will be offered.
- Medical insurance, accident and term insurance, and wellness assistance will be offered until the end of the year.