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Food delivery giantis reportedly laying off more than 250 employees this month across operations, technology, customer service, and supply chain verticals. This could affect close to 3-5% of its workforce.
Girish Menon, Head of Human Resources at Swiggy, informed employees of performance-based exits in a recent town hall. The company has started restructuring its teams with advice from a consulting firm, The Economic Times reported.
Swiggy is also said to have announced the promotion of multiple executives to the vice president level. Mihir Shah, Head of Operations, has been promoted to Senior Vice President of Operations, as per the report.
In response to queries from YourStory, a Swiggy spokesperson said, “There have been no layoffs at Swiggy. We concluded our performance cycle in October and have announced ratings and promotions at all levels. As with every cycle, we expect exits based on performance.”
The company is also likely to move people from its grocery delivery vertical Instamart to reduce cash burn in the quick commerce segment.
The development follows the likes of several well-funded firms that have let go of employees to conserve cash in a tough macroeconomic environment. Zomato laid off nearly 3% of its workforce last month, while technology giant Amazon dismissed hundreds of its employees alongside closing down struggling verticals such as Amazon Food and Amazon Academy.
This also comes just a week after Swiggy closed down its cloud kitchen brand The Bowl Company in Delhi.
A recent report by brokerage firm Jefferies noted that Swiggy’s losses during the January-June period were “much higher at over $315 million”, compared to Zomato’s standalone loss of $170 million in the same period.
Prosus, a leading investor of Swiggy, also said that its share of Swiggy’s trading loss increased to $105 million, driven by investments in both the core restaurant food delivery business to increase growth, and in Instamart to expand its footprint.