Bangalore, 20th January 2023: Swiggy, a food tech company, laid off 380 employees as part of a corporate rationalisation effort in light of the challenging venture capital market. The decision was announced to the workers today (January) at a town hall.
Today morning, CEO and founder Sriharsha Majety wrote an email to the company’s staff, “As part of a restructuring process, we’re putting into action a very tough choice to reduce the size of our workforce. We will be saying farewell to 380 talented Swiggsters during this process. I’m sorry to all of you for having to follow through with this decision, which was exceedingly tough to make after considering all of the possibilities.”
The business announced that it would examine several of its current verticals more closely and that it will close its meat market, while it would still deliver meat via Instamart.
Depending on their tenure and grade, the impacted employees will get a cash settlement equal to three to six months’ income. Additionally, all incentives will be paid out in full, and the joining bonus and retention bonus will not be paid out. Additionally, there are no longer any yearly stock options. The impacted employees are welcome to take part in the ESOP liquidity programme, which is scheduled to begin in July 2023, according to the business.
The decision by the business was made immediately following the 600-employee layoffs at ShareChat’s parent company, Mohalla Tech. Swiggy has joined the ranks of unicorns like Unacademy, upGrad, and Moglix, all of whom have just laid off a large portion of their workforces during the first three weeks of this year.