announcement of laying-off 520 employees, or 13% of its workforce two days ago,
Swiggy has announced its plan to cut jobs of 1,100 employees. According to
reports by MoneyControl.com, this has been announced today by Sriharsha Majety,
Co-Founder and Chief Executive Officer, Swiggy.
the decision and few important points.
and well. As I’d mentioned during the session, today is one of the saddest days
for Swiggy as we have to go through an unfortunate downsizing exercise. With a
heavy heart, I have tried to share the reasons and details of the process
below, because you deserve to know.
profitability for the food delivery business last December. We also started
making great progress on our unit economics over the following months before
Covid hit us. We had mentioned that we will be focusing on being efficient
everywhere – including employee costs – and that we’d come back when we have
Covid hit us with another huge blow of uncertainty, forcing us to look even
harder at our cost base and preparedness for the road ahead. While Covid might
have long-term tailwinds for the delivery business and digital commerce when
things settle eventually, nobody knows how long the uncertainty will last. We
therefore need to be prepared to see through this winter, to emerge stronger on
the other side. While all our hard work and some good luck has meant that we
have had a stable setup all these years, we have to make some very hard
decisions we have made given the landscape.
impacted over the short term, but is expected to start growing again after
that. We need to hence prepare to come out stronger on the other side by
continuing to build on capabilities that will help us make the most of the
opportunity when things are better again. While we are very fortunate to have
raised capital just before Covid hit and have sufficient runway today, it is
incredibly important to prepare for worse scenarios in the macro environment
and make sure we are protected.
withstand any further risks from the uncertainty. We will have to reduce our
expenses such that we can achieve profitability with a smaller order volume
than hitherto planned. This will be done keeping in mind already identified
efficiencies, along with additional reductions in teams and initiatives that
will have lower activity because of Covid.
either going to be highly volatile or will not be highly relevant for the next
18 months. The biggest impact here is on the cloud kitchens business, with many
unknowns about volumes through the year. Since the onset of Covid, we have
already begun the process of shutting down our kitchen facilities temporarily
or permanently, depending on their outlook and profitability profile. We are
already operating at significantly lower levels on our staffing and physical
infra than our earlier footprint, and will continue to optimize before we get
more clarity on order volumes for food delivery.
doubt that we are now at an inflection point for the penetration of digital
commerce and home delivery in India. This offers us opportunities to continue
investing our efforts in grocery and other service offerings that we think will
continue to do well. We are going to invest in these high-confidence efforts to
focus not on surviving alone, but on growing along the way by adapting very quickly.
To enable this, we have already re-aligned some team members from other
businesses into these initiatives.
office infrastructure, etc. While we will come back to share more information
on this, it is one of the areas where we feel the cut is most prudent given it
doesn’t affect customer or employee experience. We’ve all done some of the
greatest work of our time at Swiggy over the last few weeks working remotely,
and that’s reason enough to believe this can be done.
ways with 1100 of our employees spanning across grades and functions in the
cities and head office over the next few days. This is easily the hardest and
longest deliberated decision the management team and I have been faced with
over recent times. We have been fortunate to have some of the brightest
missionary talent in the country join us over the last few years, and I would
like to state unequivocally that this is not at all a reflection of anyone’s
and I were very clear about a few things. We have always believed in treating
people with care and respect at Swiggy, and this process will be 10x more
important from that perspective. Without the key contributions of every Swiggster,
we wouldn’t have gotten to where we are today, and it’s really the least we can
do in this unfortunate situation.
increasingly looking like a long time away before we get back to our offices.
We are, however, definitely going to do this 1-1 and make sure we do this in
the most respectful way possible.
a 1-1 conversation with impacted employees providing further details regarding
the next steps and clarifying any questions you may have. All other employees
will receive appropriate communication from your line managers regarding the
continuity of your role with Swiggy.
career-related support that we can to make this journey less painful, and to
ease the burden on you and your families. We have done our best to be
thoughtful and express our gratitude & support through a care package, with
leaving us are able to meet their financial commitments and expenses till they
find another role, we also want to display our gratitude to team members who
have worked with us for longer and have made sustained contributions over the
years believing in the mission. The details are below:
irrespective of their notice period or tenure.
month of ex-gratia in addition to their notice period pay, working out to
between 3-8 months of salary depending on the tenure.E.g. If someone’s notice
period is 3 months and they’ve spent 5 years with us, they will get 8 months of
the company and even preferred ESOP to cash at the time of joining. While our
standard ESOP policy has a 1-year cliff and annual vesting, we will now be
extending ESOP vesting to the nearest quarter (including the months of notice
period) and waive off the 1-year cliff for those who have not completed 1 year.
possible support for the medical care of impacted employees and their families.
To facilitate this, we are providing:
December 2020. Additionally, we will also be providing insurance cover for
and financial well-being of impacted employees and their families, providing
unlimited tele/video consultation access to experienced doctors, counsellors
and financial advisors till 31st December 2020.
and want to help them find new opportunities. This is something the
outplacement cell has been working really hard on and I hope we can get a large
percentage of impacted employees placed through this effort. I will also be
sharing an update on our outplacement effort at a later time.
assisting impacted employees round the clock in identifying suitable
opportunities and providing necessary career support for the next 3 months.
mid-senior management employees, giving full access to their career coaching
services, content and personalized job search.
career transition standpoint, impacted employees will be enabled to retain
their allocated work laptops and be supported on mobile phone communication
allowance for the next 3 months.
impacted employees, we will be providing free LinkedIn Learning access for the
next 3 months, for both technical and professional skill development. We have
also curated and assigned content to them around resume building, interviewing
skills, emotional intelligence, etc. that will help them with their career
transition during this time.
within the last 1 year by reimbursing the expenses in case they wish to move
with their queries pertaining to the Care Package, reimbursement and
settlements, insurance, and any other relevant areas.
be and want to let you know we are by your side and are going to do everything
we can to help with the situation. We have all built the company together brick
by brick and have been very lucky to have you join us on this journey. I am
very sorry for having to make this decision, but want to wish you only the very
best with everything and want to thank you deeply for all your contributions to