Swiggy lets go of 350 employees in second round of job cuts, says no more restructuring
Swiggy has announced the second round of job cuts, letting go of 350 more employees, in the wake of COVID-19 pandemic. The food aggregator said that it has no more restructuring plans.
Swiggy has announced the second round of job cuts, letting go of 350 more employees, in the wake of COVID-19 pandemic. The food aggregator said that it has no more restructuring plans. This is the second time that Swiggy has sacked its staff. Earlier in May, it had let go of 1100 employees across grades and functions. The company said that the industry has only recovered 50 per cent of its peak, because of which it had to take this ‘unfortunate’ step.
"In May, we began the exercise of realigning resources to create capacity in higher potential areas with the optimism of the business attaining pre-COVID levels in the near-term. However, with the industry still only having recovered to about 50% of its peak, we have to, unfortunately, go ahead with this final realignment exercise, which will result in the net loss of 350 jobs. We are concluding the exercise we began late May and there are no plans for any further restructuring," a statement from Swiggy said.
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All the employees who have been asked to leave will be given an exit package which includes a minimum of 3 months to 8 months of salary based on tenure (includes an extra month of ex-gratia for every year served in addition to their notice period pay), accelerated vesting of ESOPs, an extension of accident and term insurance for impacted employees and health insurance for them and their families till Dec’20, learning support for both technical and professional skill development, job placement and counseling services and ownership of their laptop to highlight a few.
The company expects the impact to stay for a short term, before the segment starts to grow again.
In May, Swiggy said that it will lay off 1,100 employees in the wake of the coronavirus outbreak which has had a severe impact on business.
"Today is one of the saddest days for Swiggy as we have to go through an unfortunate downsizing exercise," Swiggy co-founder and CEO Sriharsha Majety wrote in an email to the company's employees on May 18, according to the company's blog.
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