An all-in-one 24X7 delivery platform, Dunzo has promised its employees to pay 12% yearly interest on held-back salaries.
The employees will receive interest on the difference amount. To briefly explain the structuring of interest if the employee’s salary is Rs.50,000 and the employee has been paid Rs.25,000. The 12% interest will be on the difference of Rs.25,000.
According to Money Control, Dunzo’s payroll team said in an email to employees on July 27, “Thank you for your patience and continued support.”
“We understand the inconvenience this (delay in salaries) has caused and want to ensure that we provide the possible support for the delay,” the email added.
The email further added, “There will be interest paid of 12 percent per annum…”
Recently, The company has deferred 50% salaries of its 500 employees in manager-level positions and above. The company at present has around 1,000 employees.
“All employees manager grade and above have only received 50 percent of the salary of June. Rest company says they will pay it later between July 15th to 25th,” earlier the source said.
Additionally, all employees that have been impacted since June will receive interest from July 4 to September 4.
The decision was primarily as the company facing issues managing its cashflows. There are rumors of restructuring amid a cash crunch.
Dunzo has already cut jobs twice this year. Earlier, the company cut its workforce by 30 percent which was close to 300 employees in April, and simultaneously planned a shift in the business model to reduce operating costs.
Dunzo is an all-in-one 24X7 delivery platform that picks and delivers anything and everything within the city while guaranteeing super-quick deliveries.
The company has services including the delivery of packages, groceries, food, medicines, pet supplies, and more. Founded and headquartered in Bengaluru, Dunzo was incorporated in 2015.
The company is backed by Google and Reliance.