There will be layoffs in Swiggy, so many people can be laid off

A round of layoffs may begin once again in food delivery company Swiggy. Just before the IPO, the company is planning to downsize its workforce, due to which hundreds of people have lost their jobs.

Food delivery company Swiggy is going to launch its IPO soon, but before that the company has taken a big decision. The company is preparing to downsize its workforce. Because of this, a phase of retrenchment will once again begin in the company and hundreds of people will lose their jobs.

Sources having knowledge of this matter say that Swiggy will lay off about 6 percent of its workforce. This means that about 350-400 people will lose their jobs.

costs affecting profits

According to the news of ET, the company's costs have increased so much that it has started affecting its profits. Therefore the company has prepared a layoff plan. In this, only the employees working in technology, call center and corporate roles in the company will be affected most.

Sources say that this retrenchment will not happen in one fell swoop. Rather, it will be done gradually in the coming few weeks. Senior managers of the company have been informed about this.

Wasting money on new service

Swiggy is profitable now, but is wasting money to popularize its new service Instamart. Swiggy has started this service to compete with its rival Zomato's BlinkIt. At the same time, Reliance-funded Zepto and Tata Group-funded Big Basket Instant also challenge Instamart in the market.

However, Swiggy is optimizing its finances to cut costs and rationalize expenses. Recently, companies like Paytm and PhonePe have also restructured their business to make themselves cost effective.