An Indian online food ordering and delivery platform, Swiggy lays off 380 employees due to the company’s restructuring exercise.
Due to “poor judgment the company has “overhired” employees. The CEO has also explained that the growth rate for food delivery has slowed down. This was against the company’s projections.
The company’s CEO said, “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’s CEO added.
The mail said, “Effective very soon, we will be shutting down our Meat marketplace. While the team has done exceptionally well with solid inputs, we haven’t hit product-market fit here despite our iterations.”
“From a customer perspective, we will still continue to offer meat delivery through Instamart. We will continue to stay invested in all other new verticals,” the mail added.
As part of the compensation, Swiggy will provide a cash payout between 3-6 months depending on the grade and tenure. Additionally, the laid-off employee a 100 per cent payout of incentives, and the joining bonus and retention bonus paid out will be waived.
The company also waived annual stock options. The affected employees can participate in the ESOP liquidity program, which is slated for July 2023.
Recently, companies like Twitter, Amazon, Goldman Sachs, and Microsoft also started laying off their employees. GoMechanic has also fired nearly 70% of the workforce due to Reported Incorrect Financial Data.