Swiggy Lays Off 380 Employees, CEO Calls Overhiring Case of ‘Poor Judgement’
India’s leading online food delivery platform, Swiggy, has laid off 380 employees due to a sudden slowdown in business as a result of the coronavirus pandemic. Company’s CEO Sriharsha Majety has called the overhiring a case of ‘poor judgement’. The employees have been informed about the decision through telephone calls. Contrary to the usual pink-slip practice, employees have been assured to receive their full and due salary for the next 3 months.
Reason for #layoffs
Owing to the pandemic, Swiggy had experienced a sudden drop in their business and revenue due to halted operations. This had caused the company to halt recruitment and readjust their manpower as a result of new financial circumstances. The CEO said, “We had overhired expecting much more growth than our current system could accommodate. That was a case of poor judgement, and we are now forced to right that by cutting jobs.”
Details of the layoffs
The layoffs consist of several positions, ranging from management to delivery staff. The primary place of impact has been Swiggy’s headquarters in Bengaluru, but the following office locations have also been affected by this decision: Delhi, Mumbai, Hyderabad, Chennai, Kolkata, Pune, and Gurgaon. Employees have been assured of full and due salaries for the next 3 months.
Swiggy has also taken other measures in order to bring some relief to affected employees. These include:
- Outplacement services: Swiggy has provided outplacement services to help connect affected employees to new opportunities.
- Support services: The company has set up a dedicated helpline number to provide the required support services to employees during this phase.
- Further hiring: The company plans to resume its recruitment process, but with more measured and thoughtful hiring.
Swiggy has been in the news often during these times, as the company had to fight immense competition and outstanding dues from restaurants. The unfortunate layoffs will only add to the company’s current tribulations.