Swiggy makes cuts: 380 employees let go as startup winter intensifies
Swiggy CEO Sriharsha Majety apologizes for laying off 380 employees.
24 January 2023
Swiggy has will not only let go of 380 staff but has also closed its meat marketplace.
Fired employees will receive a cash payout of 3-6 months' salary based on tenure and grade.
Majety said that the company would have to take a harder look at some of its existing verticals.
On January 20, a spokesperson for foodtech company Swiggy announced that 380 employees have been
let go in an effort to rationalize the business amid a challenging venture funding market, adding that it is the latest in a series of layoffs that have affected India's startup ecosystem.
The decision, which affects around 3 percent of its 6,000-strong staff, was communicated to employees at a town hall.
"We’re implementing a very difficult decision to reduce the size of our team as a part of a restructuring exercise. In this process, we will be bidding goodbye to 380 talented Swiggsters.
This has been an extremely difficult decision taken after exploring all available options and I’m extremely sorry to all of you for having to go through with this"
Swiggy founder and CEO Sriharsha Majety said in an email to employees after the town hall.
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Majety announced that the company will have to re-evaluate some of its existing verticals and will be shutting down its meat marketplace.
"While the team has done exceptionally well with solid inputs, we haven’t hit product market fit here despite our iterations. From a customer perspective, we will still continue to offer meat delivery through Instamart. We will continue to stay invested in all other new verticals" he added.
Based on their tenure and grade, employees who have been fired will receive a cash payout of three to six months" salary, including a 100 percent payout of variable pay/ incentives. However, the joining and retention bonuses paid out will be waived.
The company announced that it will be extending the vesting of stock options to the nearest quarter from the last working date for the affected staff, and also waiving the annual vesting cliff. Additionally, they will be eligible to participate in the ESOP liquidity program scheduled for July 2023.
The SoftBank-backed company had raised $700 million in its last funding round in January 2022 at a valuation of $10.7 billion.