Food delivery unicorn Swiggy plans to lay off around 500 to 900 cloud kitchen staff, which include mostly contractual employees. The company has come to this decision in order to conserve cash and survive amid the pandemic situation.
The layoffs will begin from the next month from the cloud kitchens across 10 tier 1 and tier 2 cities, which operate Swiggy-owned Homely and The Bowl Company.
Swiggy in a statement has said that the company’s business has been impacted seriously amid the COVID-19 outbreak. On top of that, the government authorities have released a notice to the cloud kitchen players – advising them to operate with half of their workforce.
“As the lockdown gets further extended, we are evaluating various means to stay nimble and focused on growth and profitability across our kitchens. These include renegotiating contracts with landlords, relocation of certain kitchens to more optimal locations and discontinuing operations at a few kitchens that have been severely impacted since the lockdown came into effect,” – said a Swiggy spokesperson
According to Entrackr, 40% of the layoff is likely to be done on the basis of an annual performance review. Out of which, over 300 employees who have been poor performers and low graders will be asked to leave.
“This will, unfortunately, have an impact on a certain number of kitchen staff who will be fully supported during this transition.” – Swiggy spokesperson further added