380 workers out of Swiggy, CEO explains bad decision of hiring more

Swiggy, which takes food delivery orders through the app, has laid off 380 workers as part of the company’s restructuring. Swiggy has attributed this to challenging macroeconomic conditions. However, the company’s co-founder and CEO, Sriharsha Majety, said the company had made poor decisions and over-hired.

In an email to the affected workers of the company, Sriharsha apologized to them. Told That this very difficult decision has been taken after considering all the options. He said that the growth rate of Swiggy has been lower than the company’s estimates. He said, “The company needs to re-think the indirect cost as it is impacting the profitability targets. We have already taken steps on other indirect costs like infrastructure and office. We also need to improve the overall expenditure on staff. . Most of the hiring in the company was due to bad decisions. I should have done better at this.”

Swiggy has offered three to six months of cash payment to the affected workers under the Employee Assistance Plan, depending on their grade and length of service with the company. These workers will get three months salary or notice period salary and 15 days pay for each year completed in the company along with balance earned leave pay, whichever is higher.

recently swiggy has started an ambulance service to help its delivery executives and their dependents in case of emergency. To use the service, delivery executives need to dial a toll-free number or they can tap SOS on the app in case of an emergency. Swiggy had reported that the current average response time on the ambulance service is 12 minutes. No document will be required to use this service. Delivery Executives only need to verify their Partner ID. Recently, a study by NITI Aayog said that the number of gig workers in the country is around 77 lakh and by 2029-30 it may increase to around 2.35 crore. These workers include consultants, bloggers and delivery executives.