Swiggy plans to layoff 1100 Employees
Days after zomato announced that it is laying off employees, rival swiggy too, has informed employees that it will be laying off 1,100 of them across grades and functions in the cities and head office over the next few days. Apart from laying off employees, the company also unveiled plans to build a leaner organisation and reduce costs to achieve profitability even with a smaller order volume that planned before.
In a mail to employees, Sriharsha Majety, Co-founder & CEO, swiggy said that COVID-19 has hit Swiggy’s business with a huge blow of uncertainty, forcing the company to look harder at its cost base and preparedness for the road ahead. While we are very fortunate to have raised capital just before COVID hit and have sufficient runway today, it is incredibly important to prepare for worse scenarios in the macro environment and make sure we are protected,” he added.
Sriharsha informed employees that over the next few days, the HR team and line manager will have one-to-one conversations with those being laid off ‘and make sure we do this in the most respectful way possible’. All impacted employees will receive at least three months of salary irrespective of their notice period or tenure. And for every year an employee has spent with swiggy, the company will be offering an extra month of ex-gratia in addition to their notice period pay, working out to between 3-8 months of salary depending on the tenure. What this means is that if someone’s notice period is three months and they’ve spent five years with swiggy, they will get eight months of salary.