India’s top food delivery service Swiggy has announced that the company will cut 1,100 jobs most of it from the company’s cloud kitchen division amid Coronavirus Pandemic that has affected almost every category of business in India and the world.
Sriharsha Majety (Co-founder & CEO, Swiggy) sent a mail to all employees of the company informing about this decision.
Earlier the company announced that it was “evaluating various means to stay nimble and focus on growth and profitability across our kitchens.”
“This will, unfortunately, have an impact on a certain number of kitchen staff who will be fully supported during this transition,” added in the statement.
Swiggy employs about 12,000 people as per the analysis on LinkedIn and the company is laying off 1,100 employees.
The company also announced a care package for its employees which includes financial, emotional and career-related support.
Financial Support
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.
Healthcare & Wellness Benefits
Medical Insurance cover for them and nominated family members till 31st December 2020. Additionally, we will also be providing insurance cover for their parents.
Accident and Term insurance till 31st December 2020.
A Wellness Assistance Programme to ensure the physical, emotional/mental, and financial well-being of impacted employees and their families, providing unlimited tele/video consultation access to experienced doctors, counselors, and financial advisors till 31st December 2020.
More details about the care package can be read here.
This cut off might help the company to reduce its spending on the advertisement to $5 million from $20 million per month (Reported from the source with anonymity).
Indian food delivery service is worth about $4 billion and since the exit of Foodpanda — Swiggy is the only platform that goes head-to-head against Zomato that recently added Uber Eats after the company ended its service in the country to cut its loss and focus more on its ride-hailing service.
Swiggy has expanded and doubled down on cloud kitchens, which allows its restaurant partners to launch in more locations with not as much investment. Late last year, Swiggy executives said they had placed 1,000 cloud kitchens for its restaurant partners in the country that is more than any of its local rivals.
Both Swiggy and Zomato started delivering essential items like grocery on their platforms amid the pandemic.
