Swiggy: As part of its "restructuring exercise", Food delivery platform Swiggy fired at least 380 employees citing the slow growth. According to reports, the impacted employees will get a minimum assured payout of 3 months, which will include variable incentives at 100%.
The company also confirmed waiving off the joining bonus and retention bonus paid out.
Moreover, the laid-off employees will get medical insurance coverage for themselves and nominated family members till May 31, 2023, the company mentioned.
Swiggy to close down its meat marketplace
Further, the company stated that it will soon be closing down its meat marketplace because it was unable to find a product-market fit despite its iterations.
"The growth rate for food delivery has slowed down versus our projections along with many peer companies globally. This meant that we needed to revisit our overall indirect costs to hit our profitability goals," Sriharsha Majety, Co-founder and CEO, stated in an email
"While we'd already initiated actions on other indirect costs like infrastructure, office/facilities, etc, we needed to right-size our overall personnel costs also in line with the projections for the future. Our overhiring is a case of poor judgement, and I should've done better here," he added.
Swiggy's revenue loss in FY22
The online food delivery platform's losses reportedly doubled to Rs 3,629 crore in FY22 compared to Rs 1,617 crore in the last 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). Meanwhile, Swiggy's revenue increased by 2.2 times in FY22 -- from Rs 2,547 crore to Rs 5,705 crore.
(With inputs from IANS)