Food delivery platform Swiggy is laying off over 1,000 employees. Swiggy informed employees in an internal email from co-founder and CEO Sriharsha Majety. The email got later published in the company’s blog post. The announcement comes merely a few days after Zomato announced its plans to lay off 13 percent 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.”, wrote Sriharsha Majety.
Swiggy will be providing impacted employees three months of financial support regardless of their notice period. On top of this, employees will be getting an extra month based on their years of experience with the firm. For instance, an employee who has spent 5 years with Swiggy will get 8 months of salary.
Apart from this, employees will be getting healthcare and wellness benefits. Below are the details, as mentioned in the blog post:
Healthcare and Wellness Benefits
- Medical Insurance cover for them and nominated family members till 31st December 2020. Additionally, we will also be providing insurance cover for their parents.
- Accident and Term insurance till 31st December 2020.
- A Wellness Assistance Programme to ensure the physical, emotional/mental and financial well-being of impacted employees and their families, providing unlimited tele/video consultation access to experienced doctors, counsellors and financial advisors till 31st December 2020.
Majety mentions the company has planned to either scale or shut down adjacent businesses that won’t be highly relevant for the next 18 months. This includes the company’s cloud kitchen business.
“The biggest impact here is on the cloud kitchens business, with many unknowns about volumes through the year. Since the onset of Covid, we have already begun the process of scaling down our kitchen facilities temporarily or permanently, depending on their outlook and profitability profile.”, he said.