Indian food-tech decacorn, Swiggy, has fired 350 employees to combat the macroeconomic hardships. The chief executive officer (CEO) Sriharsha Majety informed employees about the development through an internal note.
“We’re implementing a very difficult decision to reduce the size of our team as a part of the restructuring exercise. In this process, we will be bidding goodbye to 380 talented Swiggsters,” the CEO said.
"Our overhiring is a case of poor judgment, and I should have done better here," he added.
The impacted employees will get three to six months' salary as compensation depending on their tenure. They will also receive a guaranteed payout of wages of at least three months.
On Thursday, multiple media sources claimed that the company is planning to terminate 10 per cent of its employee bandwidth. However, Swiggy did not comment on the claims. Today, it has revealed the numbers.
Last year, Zomato–another food tech decacorn and Swiggy's competitor, announced plans to trim down three per cent of its workforce.
Since 2022, the company has been going through some tough challenges. According to the CEO, the growth of its food delivery business has slowed down. It has also shut down its meat delivery business. Additionally, the company has doubled its losses. In the financial year (FY) 2022, Swiggy witnessed a loss of Rs 3,628.90 crore compared to Rs 1,616.90 crore from FY21.
The Indian tech sector witnessed massive hardships in 2022. Nearly 18,000 employees lost their jobs in the tech space. Till now, this year has not offered any difference. More than half a dozen companies fired their employees. With this latest development, Swiggy has joined a group of companies like ShareChat, Rebel Foods, Cashfree, Hubilo and Ola.