Swiggy, the renowned food and delivery giant gearing up for an IPO, is set to undergo a restructuring move, resulting in the layoff of approximately 350-400 employees, according to insider sources.
This strategic cost-cutting initiative by Swiggy will impact nearly 6% of its workforce across various teams, including technology, call center, and corporate roles. The company, with around 6,000 employees on its payroll, plans to conduct the layoffs gradually over the coming weeks.
Swiggy previously undertook cost-cutting measures in January 2023, which included the layoff of 380 employees and the closure of its meat marketplace.
While Swiggy’s food-delivery business remains profitable, its grocery unit, Instamart, has been a cash-burning segment. In preparation for its public market listing later this year, Swiggy aims to optimize all aspects of its operations to showcase improved financials.
The move by Swiggy aligns with a broader trend in the technology sector, where large internet firms like Paytm and Flipkart have implemented team restructuring to manage costs amid a prolonged downturn.
Alongside layoffs, Swiggy has also experienced several high-level exits, including key executives such as Sidharth Satpathy, Dale Vaz, Karthik Gurumurthy, Ashish Lingamneni, Nishad Kenkre, and Anuj Rathi.
Invesco, a major investor in Swiggy, recently marked up the company’s valuation to $8.3 billion, the second increase in its fair value assessment in the past three months. Invesco holds a 2% stake in Swiggy.
Prosus, the largest shareholder in Swiggy, reported on November 30 that the Indian food-delivery major’s loss had narrowed by 35% from a year ago to $208 million for the half-year ended September 30.
Swiggy has been making key strategic moves, including the appointment of former Diageo India MD and CEO, Anand Kripalu, to its board as an independent director and chairman.
