India: Food tech unicorn Swiggy to lay off another 350 employees

A Swiggy delivery executive enroute to a restaurant. Photo: Livemint

After laying off 1100 employees across cities in May, food tech unicorn Swiggy has decided to let go of another 350 employees, in what is being termed as the second wave of layoffs at the company.

According to Swiggy, the food tech industry has recovered only to about 50%, as it was expecting a sharper comeback, from the covid-crisis.

“In May, we began the exercise of realigning resources to create capacity in higher potential areas with the optimism of the business attaining pre-covid-19 levels in the near-term. However, with the industry still only having recovered to about 50 per cent of its peak, we have to, unfortunately, go ahead with this final realignment exercise, which will result in the net loss of 350 jobs,” said Swiggy in a statement.

Swiggy said it will provide a minimum three to eight months of salary, including an extra month of ex-gratia for every year served in addition to their notice period pay, to its laid off employee base.

At the time of layoffs in May, Swiggy had decided to accelerate the ESOP vesting process to the nearest quarter (including the months of notice period) and also decided to provide accident and term insurance for impacted employees (until December’20) , which will be applicable to its current laid off employee base, as well.

Earlier in June, Swiggy had also said that it is merging operations of its on-demand premium food delivery service Scootsy, which it acquired in 2018, within the Swiggy platform.

In May, Swiggy had also undertaken the exercise to shut and relocate many of its non-profitable cloud kitchens. Along with this, it had laid off 500 of its cloud kitchen workforce, which also included contractual employees.

The covid-19 crisis has forced startups to restructure their business as they undertake a second wave of layoffs. Recently, health and fitness platform, Curefit also laid off and furloughed almost 600 employees, earlier this month.

This article was first published on livemint.com.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.