Layoffs seem to have taken the center stage as the commonplace and most practised form of cost cutting in the period of economic uncertainty.
This has hit lakhs of employees all over the world across different sectors as companies undergo job cuts.
Several Indian companies too have announced the layoffs and making the rounds now is the food and grocery delivery company Swiggy.
Swiggy to Cut Jobs
The delivery giant can issue pink slips to up to 250 employees this month. This means, about 3-5 per cent of its workforce will be affected. These layoffs will be across supply chain, operations, customer service and technology roles.
While few people privy to the development shared the news of upcoming layoffs at Swiggy, others said that the number could go beyond 250 in coming months.
Swiggy, on the other hand, stated that there have been no layoffs yet, however, it did not rule out any firing this month or the near future.
In a response elicited, the company said that “We concluded our performance cycle in October and have announced ratings and promotions at all levels. As with every cycle, we expect exits based on performance”.
Girish Menon, Swiggy’s head of human resources had intimated the workers about the performance-based exits in a recently concluded town hall.
Corporate Restructuring by Swiggy
As per a company insider, the company has started restructuring its teams and had also parallel announced the promotion of a number of executives to vice president level.
Mihir Shah, who heads operations, was made vice president of operations.
As part of the restructuring, the food delivery company is shifting employees from its grocery delivery service Instamart to other functions.
As Instamart burns cash, this restructuring move is intended to cut the company’s cash burn, as Instamart goes conservative on the expansion of its quick-commerce business.
As per the industry executives, there could be more layoffs in the coming months as Swiggy is looking at depending on a leaner team to function its different businesses.
“Major rationalisation exercise is being planned,” according to a person in the know of the matter.
Swiggy wants a very lean team structure across functions. Sensitisation workshops for employees are planned for later this month. They have appointed a consulting firm to advise them on the restructuring.
Most of the layoffs are likely to happen in tech, engineering, product roles and operations, the person added.
Swiggy is just the latest company to join a growing list of companies announcing job cuts amid a tough funding environment.
Last month, its rival Zomato had confirmed that it would be laying off 3 per cent of its workforce.
