Monday, September 27, 2021

    After Zomato fires 520 employees, Swiggy Sacks 1,100 Employees as Covid outbreak hits food orders

    Swiggy to lay off 1,100 employees as outbreak hits food orders

    Food delivery company Swiggy on Monday announced that it will lay off 1,100 employees, or nearly 14% of its total workforce, as the weeks-long nationwide lock-down to contain the corona-virus outbreak severely affected the demand for online food ordering.

    • All impacted employees will receive at least 3 months of salary irrespective of their notice period or tenure.
    • For every year they have spent with us, we will be offering an extra month of ex-gratia in addition to their notice period pay, working out to between 3-8 months of salary depending on the tenure.
    • E.g. If someone’s notice period is 3 months and they’ve spent 5 years with us, they will get 8 months of salary.

    Zomato fires 520 employees, offers them 50% salary for up to 6 months

    Zomato, one of India’s most prominent startups, is one of many which are laying off workers or reinventing parts of their business as the COVID-19 pandemic hits revenues.

    Zomato has announced it’s cutting 13% of its workforce or 520 employees to reduce costs amid the coronavirus crisis. Zomato said it would provide those affected with 50% of their salaries for six months or until they find another job, whichever comes first. They will also be allowed to keep their company-issued laptops and phones if any.

    Goyal said Zomato’s food-order volumes had fallen and the company saw “long term potential” in grocery deliveries.

    • The company has reduced its monthly cash burn and has a “very generous amount” of financial runway in the bank, he added.
    • Backed by Ant Financial – an affiliate of Chinese e-commerce giant Alibaba Group Holding – Zomato bought Uber’s Indian food delivery business in January.
    • Zomato’s main rival, Swiggy, has also laid off a number of employees, it said last month.
    • Zomato had about 4,000 employees, excluding contracted delivery workers or “riders”, a spokeswoman told Reuters on Friday.


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