After laying off over 1100 employees in May, Swiggy has yet again announced that it would be laying 350 more employees due to slower business recovery. Earlier, 1100 Swiggy employees were impacted because of the lockdown imposed due to coronavirus but now the company has said that the "industry has received only 50 percent of its peak" and hence they had to let go off 350 employees.
"In May, we began the exercise of realigning resources to create capacity in higher potential areas with the optimism of the business attaining pre-covid-19 levels in the near-term. However, with the industry still only having recovered to about 50 percent of its peak, we have to, unfortunately, go ahead with this final realignment exercise, which will result in the net loss of 350 jobs," Swiggy said in a statement.
However, the food-hailing giant has offered three to eight months of salary to the employees who lost their jobs along with accelerated stock vesting. The impacted employees can avail health insurance benefits, accident insurance, term life insurance, and health insurance benefits until December. Swiggy has said that it will provide extra services to its impacted employees including job placement, skill development, and counseling. The company will also provide an "extra month of ex-gratia to employees in addition to their notice period pay, working out to between 3-8 months of salary depending on the tenure."
In order to recover the losses, Swiggy had ventured into alcohol delivery in various parts of the country. Prior to this, Swiggy was also providing the grocery delivery services in India ever since the lockdown was imposed. Both Swiggy and its rival Zomato had forayed into grocery delivery and had partnered with local shops and retail stores including Vishal Mart, Le Marche, and more to provide the services to the users. However, turns out Swiggy couldn't recover the losses despite venturing into new business areas.
Earlier, Swiggy co-founder and CEO Sriharsha Majety had said that the worst affected business is the cloud kitchens businesses. "Since the onset of COVID, we have already begun the process of shutting down our kitchen facilities temporarily or permanently, depending on their outlook and profitability profile. We are already operating at significantly lower levels on our staffing and physical infra than our earlier footprint, and will continue to optimize before we get more clarity on order volumes for food delivery," he said in a blog.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today