Swiggy, a well-known food supply chain, decided to show the exit door to 380 employees as part of its latest layoff process.
New Delhi: Swiggy, a well-known food supply chain, decided to show the exit door to 380 employees as part of its latest layoff process. The company sent an email to the employees who have been sacked. The CEO of the food delivery company, Sriharsha Majety, has given various reasons for taking such steps and apologised for reducing the headcount at Swiggy.
It was a tough time to reduce the size of our team, and in this process, we have cut short the 380 talented and dedicated Swiggers. The decision was taken after thinking, “In the end, we have to reach this decision to remove a large number of talented staff,” the company’s CEO said.
Swiggy has mentioned that the company has been facing challenging macroeconomic conditions at the moment. The growth rate was dipping, which has resulted in poor profits and dropped income as well. In fact, Swiggy claims that there is no lack of cash reserve for the company to sustain itself. Over-hiring was also one of the reasons for cutting the headcounts.
“While we’d already initiated actions on other indirect costs like infrastructure, office/facilities, etc., we needed to right-size our overall personnel costs also in line with the projections for the future,” he said. The executive also blamed the company’s “poor judgment” for “overhiring” and said that he “should’ve done better here.”
Swiggy has been planning to close down its meat marketplace as the company has failed to hit the market. But the meat delivery will continue through Instamart.
