In a strategic move towards achieving profitability, food tech, and quick commerce decacorn Swiggy has recently laid off approximately 5-6% of its overall workforce. This decision comes as the Bengaluru-based company aims to turn profitable by the second half of the current year.
The layoffs, impacting around 350-400 employees, mark the largest workforce reduction within Swiggy this year and the second one in the past 12 months. In January 2023, a similar number of staff were let go, accompanied by the closure of the meat marketplace as part of cost-cutting efforts.
The recent layoffs are also seen in connection with Swiggy’s potential plans for a public listing, expected to materialize in the next fiscal year (FY25). The company is strategically realigning its resources and structure to optimize operations for a successful public offering.
Alongside the workforce reduction, Swiggy has witnessed top-level exits in the current fiscal year (FY24). Notable names include Sidharth Satpathy, Dale Vaz, Karthik Gurumurthy, Ashish Lingamneni, Nishad Kenkre, and Anuj Rathi.
Despite these workforce adjustments, Swiggy’s investor Invesco has marked up the company’s valuation to $8.3 billion, showcasing confidence in the company’s long-term prospects. Swiggy initially reached a peak valuation of $10.7 billion, entering the esteemed Decacorn Club after a $700 million funding round in January 2022.
The trend of layoffs is not unique to Swiggy, as various growth and late-stage startups are recalibrating their workforce to navigate a prolonged funding winter and prioritize profitability over rapid expansion. Several companies, including Simplilearn, Third Wave Coffee, Udaan, ShareChat, and Bolt. Earth, has recently implemented workforce reductions to streamline costs.
In the broader landscape, even public companies like Paytm and Walmart-backed Flipkart have resorted to workforce reductions, emphasizing the industry-wide focus on fiscal responsibility. Cult.fit and InMobi are among the latest companies to undertake significant employee layoffs.
As Swiggy strategically realigns its workforce, the move reflects the broader trends in the startup ecosystem, where companies are making calculated decisions to ensure sustainability and navigate the dynamic economic landscape.
