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HomeNewsSwiggy layoff: fires 380 employees, CEO apologizes and says company overhired

Swiggy layoff: fires 380 employees, CEO apologizes and says company overhired

Swiggy layoff: As part of its most recent round of Swiggy layoff, Swiggy has announced that it will be terminating 380 employees. In order to tell employees of its intention to fire hundreds of people, the corporation held a town hall meeting. The CEO of the food delivery service, Sriharsha Majety, has apologized for Swiggy’s decision to reduce headcounts and provided a number of justifications for the Swiggy layoff.

“As part of a reorganization process, we’re putting into action a very painful choice to reduce the size of our workforce. We will be saying farewell to 380 talented Swiggsters during this process. I’m sorry to all of you for having to make this decision, which was extremely tough to make after considering all of the possibilities “The CEO of the business remarked.Also read about :https://thesangerherald.com/2023/01/21/google-cut-12000-jobs-tech-layoffs/

The difficult macroeconomic conditions Swiggy is dealing with are one of the main factors highlighted. The business disclosed that the slowing of the expansion of food delivery has led to lower income and profitability. However, Swiggy claims to have sufficient cash on hand to cover expenses. The management has also attributed its choice to fire workers to “overhiring.”

“Companies (public and private) all around the world have been adjusting to the new normal over the past year under challenging macroeconomic conditions, with updated investment horizons and hastened timetables for profitability. We have previously accelerated our own timetables for profitability on food delivery and Instamart, so we’re not an outlier in this regard. Although we are fundamentally well-positioned to weather challenging circumstances thanks to our cash reserves, we cannot use this as a crutch and must continue finding ways to cut costs in order to secure our long-term, “said the CEO.

The CEO further highlighted that, contrary to the company’s expectations, the growth rate for food delivery has halted. In order to achieve our profitability targets, the organization had to review our total indirect costs. Although we had already started taking steps to reduce some indirect expenses, such as those associated with infrastructure, office space, and other facilities, he continued, “We needed to right-size our entire staff costs in line with the estimates for the future.” The CEO added that he “should’ve done better here” and faulted the company’s “poor judgment” for “overhiring.”

According to the corporation, affected Swiggy layoff employees will get a cash reimbursement during the next three to six months. Based on their tenure and rating, it will be decided. People will either receive an assured three-month salary, 15 days of ex-gratia for each year of service that has been fulfilled, as well as any unused paid time off. To all those who are impacted by Swiggy layoff, Swiggy will at least provide 3 months of payment, including variable pay or bonuses.

Harsh Soni
Harsh Soni
Harsh is pursuing a graduation in Medicine. He has been working as a creative writer and news editor for the past 4 years. He is passionate about writing and learning new concepts.
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