Food delivery platform Swiggy is planning to lay off 380 jobs, citing challenging macroeconomic conditions, according to an internal mail seen by Reuters on Friday, and joined a list of Indian startups that are shedding their workforce.
“The growth rate for food delivery has slowed down versus our projections (along with many peer companies globally). This meant that we needed to revisit our overall indirect costs to hit our profitability goals,” Swiggy Chief Executive Officer and founder Harsha Majety told staff in the mail.
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“We needed to right-size our overall personnel costs, also in line with the projections for the future. Our overhiring is a case of poor judgement,” the mail added.
The food delivery startup, which has an employee strength of 6,000, operates in more than 500 cities.
Fears of an economic downturn prompted startups to slash thousands of jobs in recent months. Edtech startup Byju’s, ride-hailing app Ola and video platform ShareChat also announced job cuts over the past six months.
Funding rounds backed by venture capital firms have also slowed down compared with a blockbuster 2021, according to Venture Intelligence.
Earlier this week, technology giants Microsoft Corp and Amazon.com Inc said they would lay off 10,000 and 18,000 employees, respectively, while Meta announced its decision to cut 11,000 jobs.