Swiggy to Fire 10% of its Employees Post Evaluation

Bengaluru-based online food delivery platform Swiggy is anticipated to let go of up to 10% of its workforce, or roughly 600 individuals, following a thorough performance evaluation that was completed late last year amid economic uncertainty and concerns.

Swiggy's impending layoffs will probably have an effect on the company's product, engineering, and operation divisions.

In order to decrease cash burn, Swiggy's quick commerce delivery service Instamart is also anticipated to be impacted by the impending layoffs.

According to earlier reports that appeared in December, Swiggy may begin firing more than 250 workers in January, or up to 5% of its staff.

However, after the performance cycle's conclusion in October, the number of laid-off workers would increase even further. The business has just about 6,000 employees.

Swiggy previously stated there were no layoffs and that "we expect exits based on performance" with each performance cycle.

Losses at the online meal delivery service more than doubled to Rs 3,629 crore in FY22 from Rs 1,617 crore the previous fiscal year.

In FY22, total expenses increased 13% to Rs 9,574.5 crore, according to the company's annual financial statement filed with the Registrar of Companies (RoC).

Swiggy's revenue increased by 2.2 times in FY22, from Rs 2,547 crore to Rs 5,705 crore. Despite giving significant savings, global brokerage firm Jefferies said in November of last year that Swiggy was rapidly losing market share to its competitor Zomato.

The food delivery service raised $700 million earlier in 2022 under the leadership of Invesco at a $10.7 billion value.