Food and grocery distribution platform Swiggy will lay off 380 employees, joining a swath of Indian VC-backed corporations that resorted to firings to control costs amid a subsidy winter.
The company will lessen its workforce by 380 employees “as a part of a restructuring bodybuilding”, Swiggy’s Chief Executive Officer Sriharsha Majety transcribed in an email to the employees.
“Over the last year, under interesting macroeconomic conditions, companies around the world (public and private) have attuned to the new normal with refreshed investment horizons and quicker timelines for profitability,” he wrote. “We’re no omission here, and have already advanced our timelines for effectiveness on food delivery and Instamart.”
While Swiggy’s cash capitals allow it to be “fundamentally well positioned”, Majety said, the company needs to return to its overall indirect costs to hit its success goals. “In addition, the growth rate for food transfer has slowed down versus our projections, along with many peer businesses globally.”
He said that “overhiring is an instance of poor judgment” and that he “should’ve done improved here.”
The company will likewise shut down its meat marketplace. “We haven’t hit product-market fit here despite our restatements. From a customer perspective, we will continue to offer meat delivery through Instamart. We will last to stay invested in all other new verticals,” he thought.
Swiggy joins Byju’s, Vedantu, Unacademy, and ShareChat, among others, in the layoff spree that has been taken on by a renewed focus on capital conservation amid a harsher funding scenario.