Swiggy To Lay Off 400 Employees To Cut Costs Ahead Of IPO: Report

New Delhi:

Food delivery platform Swiggy is set to lay off 400 employees in a fresh round of job cuts, reports said. This comes a year after the company announced it was “bidding goodbye to 380 talented Swiggsters” as part of a restructuring exercise.

According to reports, the second round of layoffs, which has been initiated as cost-cutting measure, will impact around 7% of the food delivery giant’s workforce of 6,000 employees. Workers in tech, customer service and corporate roles are likely to be hit the hardest by the job cuts. 

NDTV has reached out to Swiggy for a comment but the company is yet to respond.

The development comes at a time when Swiggy is preparing for its IPO and reports suggest the company is aiming to further optimise its costs to display better financials ahead of taking itself to the public markets. While no specific timeframe for the layoffs is known, reports claim that the job cuts will take place over the next few weeks.

During the last round of job cuts, the company had assured employees that it would offer a comprehensive Employee Assistance Plan to those impacted by the layoffs in a bid to help with their financial and physical well being during the transition.

“We’re implementing a very difficult decision to reduce the size of our team as a part of a restructuring exercise. This has been an extremely difficult decision taken after exploring all available options, and I’m extremely sorry to all of you for having to go through with this,” CEO Sriharsha Majety had said in an email to employees last year.

Large-scale layoffs have hit the tech sector over the last year as even Big Tech companies like Amazon, Google parent Alphabet, Microsoft and Meta have shed tens of thousands of jobs. As artificial intelligence finds uses across sectors, tech companies are now re-prioritising their hiring needs.

In January alone, tech firms let go of over 7,500 employees, according to tracking website Layoffs.fyi.