Food delivery platform Swiggy is going to lay off soon. According to reports, Swiggy is considering another round of layoffs amid the funding slowdown. To rationalize costs, the food and grocery delivery platform is planning to lay off 8-10% of its total workforce of 6,000.
It has been told in the report that this time the employees of the product, engineering and operation departments are likely to be affected the most in the layoffs. Swiggy had earlier said it was aiming to become operationally profitable before launching its IPO, which has been delayed to the later half of this year due to the poor performance of tech stocks in recent months.
The company had completed its performance review in October 2022. After which all the employees were placed under the Performance Improvement Plan (PIP). According to sources, Swiggy employees are under a lot of work pressure as the management is reshuffling teams to get the numbers and positive unit economics factoring in ahead of the IPO launch.
Also, amid rising global uncertainties and fears of recession, Indian start-ups are eyeing a possible funding winter. Brokerage firm Jefferies said in November that Swiggy was fast losing market share to its rival Zomato.
In the financial year 2022 (FY22), Swiggy's loss more than doubled to Rs 3,628.90 crore. According to Swiggy, the company has incurred this loss due to efforts to increase its gross revenue. Swiggy's gross revenue grew by 124% to Rs 5,705 crore in FY22. At the same time, the company's gross revenue in FY21 was Rs 2,547 crore.