Source | entrackr.com |
Soon after Zomato announced to lay off 13% of its workforce, another food tech major Swiggy has decided to let go of around 1,100 of its employees across various 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 Sriharsha Majety, CEO of Swiggy in a blog post.
According to the post, the firm has planned to scale down or shut adjacent businesses that are “either going to be highly volatile or will not be highly relevant for the next 18 months.” The post further added that the biggest impact is on the cloud kitchens business “with many unknowns about volumes through the year.”
Since the onset of Covid-19, Swiggy had begun the process of shutting down its kitchen facilities temporarily or permanently, depending on their outlook and profitability profile. Last month, Entrackr had exclusively reported about the upcoming layoff at the cloud kitchen vertical of Swiggy.