Swiggy will also slash 10 percent of workers this year due to global crisis

Swiggy Layoffs 2023: Amid fears of a global recession, many companies are showing the way out to employees. After Amazon, Twitter, Google and Microsoft, food delivery company Swiggy is also planning to lay off employees. Swiggy has told that it can lay off 10 percent of its employees.

Many services may be affected

According to information received from sources, the upcoming layoffs in Swiggy are likely to affect the company's verticals like product, engineering and operations. The upcoming layoffs are also expected to impact Swiggy's instant commerce delivery service Instamart to reduce cash burn.

lay off more than 250 employees

The company did not respond to media queries on the upcoming layoffs. Earlier in the reports that surfaced in December, it was said that

Swiggy may lay off more than 250 employees or up to 5 per cent of its workforce from January.

The number of layoffs may increase

Looking at the performance of October, according to sources, the number of retrenched employees is set to increase further. About six thousand employees are employed in the company. In an earlier statement, Swiggy had said that there were no layoffs and as with every performance cycle, we expect the layoffs to be based on performance.

Company's loss doubled

The online food delivery platform's loss doubled to Rs 3,629 crore in FY22 as compared to Rs 1,617 crore in the previous fiscal. According to the annual financial statement of the Registrar of Companies, the total expenditure in FY22 increased by 131 per cent to Rs 9,574.5 crore.

Revenue increased 2.2 times

Swiggy's revenue grew 2.2 times to Rs 5,705 crore during FY22, as against Rs 2,547 crore in FY21. In November last year, global brokerage firm Jefferies had said that Swiggy was fast losing market share to rival Zomato despite offering huge discounts. Earlier in 2022, the food delivery platform raised $700 million led by Invesco at a valuation of $10.7 billion.