Bloodbath In Online Food Apps: After Zomato, Swiggy Fires 1100 Employees; Business Down By 66%
Following the footsteps of numerous other companies is the very popular online food delivery platform, Swiggy. The company has announced that they will be laying off 1100 of its employees in a virtual town hall meeting.
The company said that the downsizing activity is being conducted with a “heavy heart.” Swiggy had recently revealed that they will be shutting down the cloud kitchens due to losses.
Find out what other changes the company will be implementing in order to cushion the blow for its employees.
Swiggy Announces Lay Off Of 1100 Employees As Cloud Kitchens Businesses Shut Down
The Co-founder and CEO of Swiggy, Sriharsha Majety, penned an email to its employees announcing that 1100 of the employees will be laid off due to the decline in business and profits caused by the COVID-19 outbreak.
In the letter, Majety states, “In line with the above business decisions, 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.”
As per reports, the Cloud Kitchens have been hit with the biggest wave of the lockdown and losses as there are several unknowns about volumes throughout the year.
Swiggy’s lead competitor, Zomato has also announced recently that 13% of its workforce will be laid off as revealed by Zomato founder and CEO Deepinder Goyal.
Benefits Offered By Swiggy To The Impacted Employees; 3 Months Pay, Medical Benefits, Etc.
While earlier they used to process 3 million orders a days, now they are down to 1 million. This reduction in 66% of the business has impacted their bottomline.
The CEO announced that all the employees impacted by this layoff will be given a minimum of at least 3 months of their salary, irrespective of their notice period or tenure.
Majety said, “For every year they have spent with us, we will be offering an extra month of ex-gratia in addition to their notice period pay, working out to between 3-8 months of salary depending on the tenure.”
In addition, medical insurance cover will also be given for them and their nominated family members till 31st December 2020. Insurance cover will also be provided to the parents of the employees. Swiggy will also provide Accident and Term insurance till 31st December 2020.
There will also be a Wellness Assistance Programme to take care of the physical, emotional/mental and financial well-being of the impacted employees.
Swiggy has announced the layoff despite the Government’s clear directions regarding firing employees and cutting their salaries. How will this be dealt with now? Share your thoughts and opinions with us in the comments section right below!