Online food delivery platform Swiggy on Friday confirmed that the company is laying off 380 employees as food delivery growth slows.
"The growth rate for food delivery has slowed down versus our projections (along with many peer companies globally). This meant that we needed to revisit our overall indirect costs to hit our profitability goals," Sriharsha Majety, Co-founder and CEO, said in an email to employees accessed by IANS.
"While we'd already initiated actions on other indirect costs like infrastructure, office/facilities, etc, we needed to right-size our overall personnel costs also in line with the projections for the future. Our overhiring is a case of poor judgement, and I should've done better here," he added.
The impacted employees will receive a minimum assured payout of 3 months, which will include variable pay/incentives at 100 per cent.
The joining bonus and retention bonus paid out will be waived off.
Moreover, the affected employees will get medical insurance coverage for themselves and nominated family members till 31st May, 2023, the company mentioned.
The company also said that it will be shutting down its meat marketplace very soon as the company was not able to achieve product-market fit despite their iterations.
Further, the online food delivery platform's losses doubled to Rs 3,629 crore in FY22 compared to Rs 1,617 crore in the last fiscal year.
Total expenses went up 131 per cent to Rs 9,574.5 crore in FY22, according to its annual financial statement with the Registrar of Companies (RoC).
Swiggy's revenue grew 2.2 times to Rs 5,705 crore during FY22 as opposed to Rs 2,547 crore in FY21.