IPO-bound Swiggy to lay off 400 workers
Swiggy plans to reduce its workforce by 6%, affecting 350-400 employees across teams, as per the Economic Times. The layoffs will occur gradually over the next few weeks, as the company aims to cut costs and achieve profitability before its stock market listing later this year. This move mirrors similar actions taken by large internet firms like Paytm and Flipkart, which have restructured teams to reduce expenses following a prolonged downturn in the tech sector.
Swiggy layoffs to affect technology, call center, and corporate roles
The workforce reduction will impact teams such as technology, call center, and corporate roles. While Swiggy's food-delivery business is already profitable, the company continues to spend heavily on Instamart, its grocery unit. The Bengaluru-based firm is optimizing all aspects of its operations to cut costs and present better financials before entering the market. To improve profitability, Swiggy is also considering doubling its platform fee on food orders from Rs. 5 to Rs. 10.
Swiggy CEO acknowledges slowdown in food delivery segment
In a recent interview with CNBC, Swiggy CEO Sriharsha Majety admitted that food delivery segment in India is experiencing a slowdown. Majety, however, highlighted the vast potential in the grocery segment, which he estimates to be '50 times larger' than the online restaurant industry. Artificial intelligence is also on Swiggy's radar as a building block for future growth. Over the past two years, the company has been experimenting with AI applications, including projects like Swiggy Mini (storefront aggregator) in Bengaluru.
