IPO-bound food and grocery delivery major Swiggy has initiated another round of layoffs to streamline costs and pursue profitability, according to sources in the know.
According to a report from ET, Swiggy is planning to reduce its workforce by 6%, impacting 350-400 employees across teams such as technology, call center, and corporate roles.
The sources informed that the layoffs will take place gradually in the upcoming weeks, in accordance with ongoing discussions and instructions provided to senior leaders within the company.
While Swiggy’s food-delivery business is profitable, insiders reveal that the company has been burning cash on its grocery unit, Instamart. In an effort to enhance its financial performance before entering the public markets, the Bengaluru-based company is actively optimizing various aspects to reduce costs.
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Swiggy is now part of a growing list of prominent internet companies, such as Paytm in digital payments and Flipkart in ecommerce, that have reorganized their teams to reduce expenses in response to an extended downturn in the technology sector.
