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Tuesday, April 16, 2024

Amidst aspirations for an IPO, Swiggy intends to eliminate 400 people in another round of layoffs: Report

<p>In an effort to save expenses and turn a profit before going public, online grocery and meal delivery service Swiggy plans to eliminate 400 positions in a fresh wave of layoffs, according to The Economic Times.</p>
<p><img decoding=”async” class=”alignnone wp-image-375819″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/01/theindiaprint.com-amidst-aspirations-for-an-ipo-swiggy-intends-to-eliminate-400-people-in-another-ro.jpg” alt=”theindiaprint.com amidst aspirations for an ipo swiggy intends to eliminate 400 people in another ro” width=”1071″ height=”602″ title=”Amidst aspirations for an IPO, Swiggy intends to eliminate 400 people in another round of layoffs: Report 3″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/01/theindiaprint.com-amidst-aspirations-for-an-ipo-swiggy-intends-to-eliminate-400-people-in-another-ro.jpg 690w, https://www.theindiaprint.com/wp-content/uploads/2024/01/theindiaprint.com-amidst-aspirations-for-an-ipo-swiggy-intends-to-eliminate-400-people-in-another-ro-390×220.jpg 390w, https://www.theindiaprint.com/wp-content/uploads/2024/01/theindiaprint.com-amidst-aspirations-for-an-ipo-swiggy-intends-to-eliminate-400-people-in-another-ro-150×84.jpg 150w” sizes=”(max-width: 1071px) 100vw, 1071px” /></p>
<p>According to sources cited in the study, this will impact around 6% of its staff across a variety of departments, including contact centers, corporate jobs, and technology.</p>
<p>“Senior executives must determine which executives should be let go from a list that they have been provided. The story cited an unnamed insider as saying, “The process has started.”</p>
<p>The layoffs are related to Swiggy’s much-awaited IPO later this year, when the company hopes to report impressive financial results. The insider said, “This is related to Swiggy’s upcoming IPO, where it needs to present the best possible numbers.”</p>
<p>The 5,500–6,000 person firm, headquartered in Bengaluru, underwent a reorganization in January 2023 and let go of 380 workers as a result of its meal delivery business’s stalling development.</p>
<p>While Swiggy’s primary food delivery business is steady, its grocery division, Instamart, has been losing money.</p>
<p>According to a source cited in the article, the corporation has between $800 and $900 million in the bank.</p>
<p>In the online food and grocery delivery market, Swiggy and listed counterpart Zomato compete. Swiggy’s core food business has grown, with a gross merchandise value (GMV) of $1.43 billion, while Instamart’s GMV has grown by 63%.</p>
<p>Nonetheless, because Swiggy intends to go public this year with an anticipated IPO value of $1 billion, the pressure to turn a profit has intensified.</p>
<p>The business will join FirstCry, Ola Electric, Mobikwik, and Unicommerce, among others, who have all announced plans to go public this year, if it files its draft IPO documents.</p>

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