Published 15:43 IST, May 18th 2020
Swiggy announces 14% cut in workforce, 3 months advance salary for impacted employees
Following rival Zomato, food delivery company Swiggy has also announced a 14 per cent slash (1,100 employees) in its existing workforce due to Covid crisis
- Republic Business
- 2 min read
Following rival Zomato, food delivery company Swiggy has also announced a 14 per cent slash (1,100 employees) in its existing workforce due to the unprecedented Coronavirus crisis. CEO Sriharsha Majety informed the employees about the company's downsizing in an email on May 18 and added that the company had also begun shutting down its kitchen facilities temporarily or permanently due to the COVID crisis and the consequent lockdown. Earlier, Zomato had announced to lay off 13% of its staff due to the crisis.
In his email to employees, CEO Majety wrote, "Today is one of the saddest days for Swiggy as we have to go through an unfortunate downsizing exercise. We, unfortunately, have to part ways with 1,100 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."
Three months of salary to be given
However, the food delivery company has also announced a slew of supportive measures for those who have been impacted by the downsizing. This includes providing three months of salary and additional month of salary for each year of employment with the company. This will be over and above the notice-pay period. Swiggy has also extended its Employee Stock Ownership Policy (ESOP) to the nearest quarter which will include the months of the notice period. It also removed the existing one-year requirement for staff less than one-year-old to make them eligible for the scheme. Swiggy also extended the existing medical insurance cover for the families of the impacted workforce until December 31, 2020.
With the lockdown in effect, the food delivery company has also ventured into delivering essential products like groceries to keep its business running. Zomato too has resorted to providing home delivery of essential items. The unprecedented COVID crisis has severely impacted companies across the globe and led to a downsizing of a few. International brand Uber had also announced downsizing recently.
Updated 15:43 IST, May 18th 2020