Online food and grocery delivery platform Swiggy has undergone a “restructuring exercise” resulting in the dismissal of 380 employees due to the current challenging macroeconomic conditions. The CEO, Sriharsha Majety, also cited over-hiring as a contributing factor.
Swiggy, which previously had a workforce of nearly 6,000, has implemented layoffs amid a challenging funding climate for startups. This follows similar cost-cutting measures taken by competitors, such as Zomato’s layoffs of 100 employees last November and ShareChat’s reduction of 20% of its staff.
In an internal email, the company’s management communicated their regret for the need to downsize their team as part of a restructuring process. As a result, a significant number of employees will be impacted. The management extended their apologies to those affected and acknowledged the difficult decision they had to make after considering all options.
Employees impacted by this decision will be provided with compensation packages based on their tenure and position within the company. These packages will include a combination of three to six months of salary and medical insurance coverage until the end of May.
Additionally, employees will have the option of receiving either a guaranteed three month salary or a notice period plus 15 days of additional compensation for every completed year of service, along with any remaining earned leave as per company policy. However, some benefits such as variable pay/ incentives, joining bonus, and retention bonus will not be included in the compensation package.