Swiggy Lays Off 380 Employees Via Email, CEO Says “Sorry”

Bengaluru: As part of its most recent round of layoffs, Swiggy has announced that it will be terminating around 380 employees. The affected employees have received an email from the employer informing them of the proposed layoffs of hundreds of staff.

The CEO of the food delivery service, Sriharsha Majety, has apologised for Swiggy’s decision to reduce headcounts and provided a number of justifications for the layoffs.

“We’re implementing a very difficult decision to reduce the size of our team as a part of a restructuring exercise. In this process, we will be bidding goodbye to 380 talented Swiggsters. 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,” the company said.

The difficult macroeconomic conditions Swiggy is dealing with are one of the main factors highlighted. The business disclosed that the slowing of the expansion of food delivery has led to lower income and profitability. However, Swiggy claims to have sufficient cash on hand to cover expenses. The management has also attributed its choice to fire workers to “overhiring.”

According to the corporation, affected employees will get a cash reimbursement during the next three to six months. It will be decided based on their tenure and rating. People will either receive an assured three-month salary, 15 days of ex-gratia for each year of service that has been fulfilled, as well as any unused paid time off. Swiggy will at least provide 3 months of payment, including variable pay or bonuses to all those who are impacted.