According to media reports, food delivery platform Swiggy plans to cut 600 jobs, reducing its pool by 8-10 per cent. According to the Financial Express, job cuts are likely to affect workers in the product, engineering, and operations divisions. The mass layoffs come as the company strives to come profitable ahead of its IPO later this time. In October, the grocery and food delivery platform completed its performance review process and placed several workers on the performance enhancement plan (PIP). According to the report, Swiggy has a standing scale for all workers, and those who don’t admit a standing of 2 are placed on the PIP.
They’re most likely to be affected by the proposed layoffs. According to a media report, Swiggy operation was delayed from primary papers with SEBI for the company’s table due to the poor performance of tech stocks. According to the source, Swiggy may defer the draft form of its IPO until December 2023. In an internal note to workers, reviewed by ET, Majety wrote that growth at the food delivery business has not been in line with the company’s protrusions. He said Swiggy was over-hired and that it has been “a case of poor judgement ” on his part. “Ourover-hiring is a case of poor judgement and I should have done better then,” he said.
The Bengaluru- headquartered company also said it’ll shutter its meat delivery business, “effectively veritably soon” as it failed to achieve product request fit, indeed the platoon behind its meat perpendicular was doing “exceptionally well, with solid inputs”. Backed by Prosus, the technology investment arm of South African empire Naspers, Swiggy has been trying to reduce cash burn in crucial businesses 0similar to food delivery and Instamart, amid a clear retardation in late- stage backing in startups. Still, the number of layoff workers is set to go further over, according to sources, after the completion of the performance cycle in October. In an earlier statement, Swiggy had said there were no layoffs and with every performance cycle,”we anticipate exits grounded on performance”.