In a reorganisation effort, Swiggy, an Indian food and grocery delivery company with 380 workers, is firing them, according to co-founder and CEO Sriharsha Majety.
“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,” Majety wrote in the email, as per reports.
Employees who are affected will get benefits from employee stock ownership plans, a minimum payment of three months, medical insurance coverage through May 2023, and reimbursement for moving fees.
Majety attributed the reorganisation to the present macroeconomic slump and overhiring. He also mentioned, without getting into specifics, that, in contrast to Swiggy’s predictions, the growth rate for food delivery has slowed. “This meant that we needed to revisit our overall indirect costs to hit our profitability goals,” he noted.
In order to save costs, the SoftBank-backed firm will also shut down its meat market. Customers had access to many meat brands, including Nandu’s, Classy Meat, and Meamo, through the Meat Stores on the Swiggy app.
The business will “continue to be completely dedicated to seeking new business prospects” in spite of these steps.
Zomato and Swiggy are direct rivals in the fast-casual meal delivery market. Swiggy raised US $700 million in January 2022, valuing the company at approximately US $10 billion.
