Swiggy sacks 1,100 workers as COVID-19 shuts Cloud kitchens

Joining arch rival Zomato food delivery platform Swiggy on Monday announced to lay off 1100 employees nearly 14 per cent of its workforce spanning across grades and functions in the cities and head office over the next few days as Covid19 continues to hurt its business across verticalsAll impacted employees will receive at least three months of salary irrespective of their notice period or tenure Sriharsha Majety harshamjty Cofounder and CEO swiggy_in told employees in a virtual town hall meetingcoronalockdown pictwittercom4vZfYEycohmdash IANS Tweets ians_india May 18 2020All impacted employees will receive at least three months of salary irrespective of their notice period or tenure Sriharsha Majety Cofounder and CEO Swiggy told employees in a virtual town hall meetingFor every year they have spent with us we will be offering an extra month of exgratia in addition to their notice period pay working out to between 38 months of salary depending on the tenure said Majety Swiggy said if someones notice period is three months and theyve spent five years with the company they will get eight months of salaryThe company will inform those being laid off in onetoone video calls Swiggy said it is also going to scale down or shut down adjacent businesses that are either going to be highly volatile or will not be highly relevant for the next 18 monthsThe biggest impact here is on the Cloud kitchens business with many unknowns about volumes through the year Since the onset of Covid19 we have already begun the process of shutting down our kitchen facilities temporarily or permanently depending on their outlook and profitability profile Majety said in a detailed statement laterWe 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 deliveryLast week Swiggys closest rival Zomato announced to lay off nearly 13 per cent of its workforce over 600 employees via Zoom calls along with salary cuts for the rest of the employees for at least the next six months starting June with higher cuts going up to 50 per cent for people in senior rolesThe core food delivery business has been severely impacted and will stay impacted over the short term said Swiggy The food delivery platform is extending ESOP vesting for those impacted to the nearest quarter including the months of notice period and waive off the 1year cliff for those who have not completed 1 yearIt will also provide medical insurance cover for those impacted and nominated family members till December 31 2020 Additionally we will also be providing insurance cover for their parents said the company Majety said he needs to build a much leaner organisation and reduce costs to be able to withstand any further risks from the uncertaintyWe 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 he addedSwiggy said it will also help those impacted with smooth career transition We will have a dedicated and fullytrained talent acquisition team assisting impacted employees round the clock in identifying suitable opportunities and providing necessary career support for the next 3 months said the Swiggy CEOCatch up on all the latest Crime National International and Hatke news here Also download the new midday Android and iOS apps to get latest updates MidDay is now on Telegram Click here to join our channel middayinfomedialtd and stay updated with the latest newsThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever