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Swiggy eliminates around 400 jobs to crunch costs

Swiggy food delivery rider

Swiggy eliminates around 400 jobs to crunch costs

Swiggy is slashing approximately 350 to 400 employees, equating to about 7 percent of its workforce. 

It is part of an effort by tech startups to cut expenses and push for profitability.

The layoffs would affect its tech teams and a unit of its customer care department, particularly the call centre.

This marks the second job cuts at the Bengaluru-based food delivery startup, which is gearing up for a stock market debut. 

In January of the previous year, Swiggy cut 380 jobs. 

Startups had increasingly downsized staff amid decreased funding and investor pressure to be fiscally prudent.

A source said: “Swiggy wants to simplify work processes and build operational efficiencies. 

“The layoffs are in that direction.”

The surge in investor funding for Indian startups, spurred by increased digital adoption during the Covid pandemic, has moderated due to challenging global economic conditions and more selective investment choices.

Startups adapt by focusing on efficiency, closing unprofitable divisions, leveraging technology to optimise operations, and being more prudent with their budgets. 

As numerous high-valued startups prepare for public offerings, there is an increased emphasis on profitability, a factor highly valued in public markets.

Sriharsha Majety, Swiggy's co-founder and CEO, wrote last year that its core food delivery service became profitable by March 2023, excluding staff stock option costs. 

Swiggy also heavily invests in Instamart, its quick-commerce venture, which requires significant capital. 

Meanwhile, its competitor, Zomato, has achieved profitability in the first two quarters of FY24.

Other major internet companies, including Paytm and Flipkart, have also reduced their workforce. 

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