Swiggy may lay off over 250 employees, firm says 'exits based on performance'
After Zomato, Swiggy may lay off more than 250 employees or up to 5 per cent of its workforce starting this month.
The online food delivery platform told IANS on Thursday that however, no employee has been laid off as of now, and did not comment on the lay off figure.
"There have been no layoffs at Swiggy. We concluded our performance cycle in October and have announced ratings and promotions at all levels. As with every cycle, we expect exits based on performance," a Swiggy spokesperson said in a statement.
The Economic Times was first to report on Swiggy layoffs.
The upcoming layoffs will also impact Swiggy's quick commerce delivery service Instamart to reduce cash burn.
Last month, global brokerage firm Jefferies said that Swiggy was fast losing market share to its rival Zomato despite offering heavy discounts.
Citing Swiggy investor Prosus' financial report, Jefferies said that the gross value of Swiggy's food delivery business was $1.3 billion in the January-June period this year.
Zomato in the same period logged gross order volume of $1.6 billion.
Zomato last month said it is planning to lay off nearly 3 per cent of its workforce on account of cost-cutting efforts and to turn profitable.
Swiggy narrowed its consolidated loss by 58.7 per cent in FY21.
The food aggregator posted a loss of Rs 1,616.9 crore in FY21 compared to Rs 3,920.4 crore loss in FY20.
Its total revenue, however, declined to Rs 2,675.9 crore in FY21 from Rs 3,727.7 crore in FY20.
In May this year, Swiggy acquired Dineout, a dining out and restaurant tech platform, for an undisclosed sum.
According to sources, the acquisition size was around $200 million.
Earlier this year, the food delivery platform raised $700 million led by Invesco at a $10.7 billion valuation.