New Delhi. A big news related to food delivery company Swiggy is coming out. Swiggy, which has been running in losses for some time, has made a big announcement to lay off its 380 employees. Giving information about this, the company has said that it is a very difficult decision. He has taken this step as part of his efforts to change. The company told about the removal of 380 potential employees that we are making this difficult decision to reduce our team.
Let us tell you that after this decision of the company, CEO Shriharsh Majety has told the employees in a mail sent on his behalf that this decision has been taken after considering all possible measures. Along with giving several reasons for taking this decision of retrenchment in his email, he has also apologized to the employees for this. One of the key reasons cited by Swiggy for layoffs is the challenging macroeconomic conditions. The company said it is facing a number of challenges. The company revealed that the growth rate in the food delivery segment has slowed down, resulting in lower profits and lower earnings. However, Swiggy also claims that it has sufficient cash reserves to sustain itself. Swiggy has also blamed ‘overhiring’ for its decision to lay off people.
While talking about this, the CEO of food delivery platform Swiggy said, “The growth rate of the food delivery sector has come down, which is completely against the company’s estimates. Hence the company had to take the difficult decision of layoffs to achieve its profitability goals.” “We had already initiated action on other indirect costs like infrastructure, office/facilities etc. We also needed to right size our overall personnel cost to future projections. The CEO blamed “overhiring” on the company’s “bad judgment” and said they needed to make better decisions.
