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In an email to employees on Monday, Swiggy said it will lay off 1,100 employees across grades and functions; in the cities, it operates and the head office over the next few days. This comes just two days after Zomato said it will let go of 13% of its staff.
Sriharsha Majeti, Co-founder and CEO, Swiggy said:
The core food delivery business has been severely impacted and will stay impacted over the short term. But is expected to start growing again after that. We are very fortunate to have raised capital just before Covid hit. We have sufficient runway today but it is incredibly important to prepare for worse scenarios in the macro environment and make sure we are protected.
What will the employee get?
They will lay off every one through one-on-one calls. Every laid-off employee will get a salary of 3 months. Plus, those who have spent over one year with the company will get an extra month salary for every year. Swiggy said if someone's notice period is three months and they've spent five years with the company, they will get eight months of salary.
Swiggy’s standard ESOP policy has a one year cliff and annual vesting. However, it will now extend ESOP vesting to the nearest quarter (including the months of the notice period). It will also waive off the one year cliff for those who have not completed one year. During the current health crisis, it will ensure the health and medical facilities to those employees. This will include medical and term insurance.
On the flip side, Swiggy also said its investors continue to put their trust in the company’s leadership and their ability. Thus, they will go towards larger goals. The recent round of funding of $156 million will further strengthen and expand services that will offer convenience to consumers. Swiggy has raised a total of $1.6 billion in funding over 12 rounds from investors such as China’s Tencent Holdings, Meituan-Dianping and Prosus N. V. The other investors include Ark Impact, Korea Investment Partners and Samsung Ventures.