[ad_1]
Swiggy plans to cut 380 jobs and close its meat market as Process Ventures and SoftBank-backed Indian food delivery giants seek to navigate a market downturn that has forced companies to become leaner and more disciplined.
In an email to employees on Friday, Swiggy co-founder and CEO Sriharsha Majethi said the startup has stepped up its plans for profitability and had to make tough decisions to save money. The Bengaluru-headquartered startup, which received $10.7 billion in funding in January last year, employs around 6,000 people.
According to Majeti, the startup, like other companies in the category, is on the cusp of its planned growth in food delivery. This means we need to revisit our total indirect costs to hit our profitability goals. It is consistent with future predictions. Our issue over hiring is misjudgment, and I should have done better here,” he wrote to his staff.
“Last year, we also identified a number of areas for improvement in our execution speed. Due to the repeated build-up of various organs, there are some extra layers formed in the pocket. This definitely put a strain on our relationship, and ruined our efficiency. This meant that we were doing more on these issues than doing more with less.
Majeti said the startup plans to make the meat market “effective soon”.
While we remain fully committed to exploring new business opportunities, we’ve also taken a closer look at some of our existing new positions. Effective soon we will be closing our meat market. While the team has done exceptionally well with strong inputs, we haven’t delivered the product market here despite being repeatable. From a customer perspective, we still continue to offer meat delivery through Instamart. We continue to invest in all other new verticals.
Affected employees will be paid three to six months plus additional days based on the start of each year’s service, Majeti said in an email. Swiggy is also accelerating their covered cliff and is offering medical insurance to them and their dependents till May this year.
Job cuts, last year, were fully bled into 2023. Several startups including Zomato, Ola, Baijus, Unacademy, Cashfree, CoinDCX, Dunzo and ShareChat have laid off employees in recent months. According to industry estimates, more than 20,000 people in India’s startup workforce have lost their jobs since the market crash.
Swiggy hired bankers last year to review its $1 billion initial public offering plans for 2023, TechCrunch reported earlier. He is currently waiting for market conditions to change before proceeding with the plan.
Funding for the startup ecosystem is likely to continue for another 12 to 18 months and the industry will have to contend with a lot of “turmoil and volatility”, warned Kalyan Krishnamurthy, CEO of e-commerce giant Flipkart, late last year.
“My guess is that between April and June of next year, a lot of startup founders will be in the market, and that’s really a time of truth for the ecosystem,” he said.
[ad_2]
Source link
