The $3.6-billion Swiggy follows Zomato— the food delivery firm lays off 1100 employees as Covid-19 squeezes business
- The company also said that all impacted employees will receive at least 3 months of salary irrespective of their notice period or tenure.
- The decision to lay off employees was revealed in the company blog post.
- The news comes just days after its rival Zomato laid off 13% of its workforce.
“We unfortunately have to part ways with 1100 of our employees spanning across grades and functions in the cities and head office over the next few days. This is easily the hardest and longest deliberated decision the management team and I have been faced with over recent times,” said CEO Sriharsha Majety.
The company also said that all impacted employees will receive at least 3 months of salary irrespective of their notice period or tenure. “For every year they have spent with us, we will be offering an extra month of ex-gratia in addition to their notice period pay, working out to between 3-8 months of salary depending on the tenure,” said Majety.
"While Covid might have long-term tailwinds for the delivery business and digital commerce when things settle eventually, nobody knows how long the uncertainty will last," said the Swiggy CEO.
The news comes just days after its rival Zomato laid off 13% of its workforce. In an official blog, Zomato founder and CEO Deepinder Goyal wrote that “while we continue to build a more focused Zomato, we do not foresee having enough work for all our employees.”
Goyal also announced pay cuts for the entire organization. “Starting June, I am proposing a temporary reduction in pay for the entire organisation. Lower cuts are being proposed for people with lower salaries, and higher cuts (up to 50%) for people with higher salaries,” he wrote.
Swiggy will also be extending ESOP vesting to the nearest quarter (including the months of notice period) and will waive off the 1-year cliff for those who have not completed 1 year.
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