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Due to economic crisis, Dunzo makes additional layoffs: Report

In an ‘all hands’ meeting on Friday, the quick commerce platform Dunzo informed its staff about new layoffs, according to sources aware of the development. Throughout 2023, the business has issued pink slips to its employees three times.

Sources say that at least 20–25% of employees will receive pink slips from the company, despite the fact that the company withheld information about how many employees were affected by the most recent layoffs.

About 30% of the startup’s employees were let go in April, affecting close to 300 people. Dunzo has terminated more than 400 employees this year, counting this round of layoffs. The company announced in January that it would be laying off 3% of its workforce in an effort to improve team efficiency.

The Reliance Retail-backed company, according to media reports, has employed layoffs because of cash flow problems. The new layoffs are a part of strategies to reduce expenses by 30–40%.

According to reports in the media, Dunzo allegedly received letters regarding unpaid dues from Google, Facebook, and Nilenso on Thursday. While this has been going on, a number of company employees have claimed that Dunzo hasn’t submitted tax deducted at source (TDS) forms for their workers in the previous six months.

According to reports in the media, the platform recently decided to delay 50% of the salaries of some employees in manager-level and above positions. However, the business missed the previous deadline, pushing back the payment of several employees’ salaries by 40 to 45 days, to September 4.

Dunzo did not respond right away to questions sent to him. Should they, we’ll update the post.

Although the company has not yet released its financial information for FY23, it increased its operating revenue from FY21’s Rs. 25.1 crore to Rs. 54.3 crore in FY22.

To date, Dunzo has raised $475 million from investors including Reliance, Google, Lightbox, and Blume Ventures, among others.

 

 

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