Days after Zomato said it would lay off 13 percent of its workforce, Food Delivery company Swiggy today announced a lay off of around 1,100 employees(14% of its staff). The company said it is also scaling down some adjacent businesses to reduce costs to survive the coronavirus pandemic that has made people cautious about ordering food online.
In an internal email, Swiggy co-founder and CEO Sriharsha Majety wrote: “Today is one of the saddest days for Swiggy as we have to go through an unfortunate downsizing exercise.” He also wrote that the startup’s core food business had been ‘severely impacted.’
Swiggy employed about 8,000 people late last year but is currently processing fewer than a million orders a day on its platform. This is down from nearly 3 million it was handling before the outbreak. Speaking of the downsizing, the company, backed by Prosus Ventures, said it will provide those affected with three months of salary, with one additional month for each year they have spent at the startup. It will also provide those being let go with medical and accident coverage until the end of the year, and counseling for mental, emotional, and financial stress throughout the same period.
