Layoffs · Commerce & Consumer Brands

Swiggy cuts 380 jobs to rationalize business

By Startup Enthusiast · 20 January 2023

What they do

Swiggy laid off 380 employees amid challenging macroeconomic conditions

The company is shutting its meat marketplace but continues Instamart meat delivery

Affected staff get three to six months salary severance and ESOP eligibility

Swiggy laid off 380 employees to reduce costs amid challenging macroeconomic conditions.
The pre-layoff workforce consisted of 6,000 full-time employees across the organization.
Affected staff received a cash severance payout ranging from three to six months' salary.
Impacted employees became eligible for an ESOP liquidity program scheduled for July 2023.
The layoffs coincide with the shutdown of Swiggy's existing meat marketplace vertical.
Swiggy continues its meat delivery offerings through its Instamart quick commerce arm.
CEO Sriharsha Majety leads the company through this period of structural adjustment.
Approximately 20 Indian startups have laid off employees in 2023 so far.

The cuts aim to rationalize the business structure in response to broader economic pressures.
Swiggy surpassed rival Zomato in FY22 revenue, yet incurred higher total expenditures.
The industry context shows a trend of cost-cutting among major tech peers like Ola and ShareChat.

Swiggy operates as a major food delivery and quick commerce platform in India.
The company generates revenue primarily through delivery fees and commissions on orders.
It recently shut down its standalone meat marketplace vertical to streamline operations.
Meat delivery services continue under the Instamart brand within the quick commerce segment.
FY22 revenue reached Rs 5,705 crore, marking a 2.2X growth year-over-year.
The company experienced a 27% topline decline in FY21 before recovering in FY22.
Swiggy's total expenditure in FY22 was higher than that of competitor Zomato.
The firm employs thousands of staff including delivery partners and corporate personnel.
It competes directly with Zomato in both food delivery and instant grocery segments.

Swiggy will implement an ESOP liquidity program for impacted employees in July 2023.
The company continues to operate its Instamart vertical for meat deliveries.