Swiggy is considering another round of layoffs amid a funding slowdown. In order to rationalise costs the food and grocery delivery platform is planning to slash 8-10 per cent of its 6,000-strong workforce, The Financial Express reported on Thursday.
The report said the planned layoffs are likely to have the most impact on employees in product, engineering and operation departments.
Swiggy has said previously that it is aiming to be operationally profitable before its IPO, which has been delayed to the later half of this year due to poor performance of tech stocks in recent months.
The company reportedly concluded its performance review in October 2022, following which everal employees were put under a performance improvement plan (PIP).
Citing sources, the FE report said Swiggy employees are under immense work pressure as the management has been shuffling teams to achieve the numbers and hit positive unit economics before launching the IPO.
Also, amid increasing global uncertainties and fears of a recession, Indian startups are staring at a likely funding winter. Brokerage firm Jefferies said in November that Swiggy was fast losing market share to its rival Zomato.
Swiggy’s losses more than doubled to Rs 3,628.90 crore in FY22. The losses were believed to be due to the result of the company’s efforts to grow its gross revenue, which rose 124 per cent to Rs 5,705 crore in FY22 from Rs 2,547 crore in FY21.