Swiggy has laid off 1,100 employees and shut cloud kitchen business. Here comes the full text of the company's statement about the ongoing situation and changes ahead.
Thanks for attending the town hall today, and I hope you’re staying safe 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.
As you all know, we started chalking out an accelerated path to 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 greater clarity.
As we came closer to chalking out the final details of that exercise, 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 today.
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I want to start by first sharing the management outlook and key business decisions we have made given the landscape.
Ever since the day it became clear that we will need to downsize, Girish 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.
While we waited to see if we can have these conversations F2F, it’s 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.
Over the next few days, the HR team along with the line manager will have 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.
We are fully committed to providing the best financial, emotional and 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 details below.
DETAILS OF THE CARE PACKAGE
While our primary objective is to ensure that all employees who are 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:
Many team members have joined Swiggy believing in the growth potential 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.
Healthcare & Wellness Benefits
During the current health crisis, we want to ensure we provide all possible support for the medical care of impacted employees and their families. To facilitate this, we are providing:
We want to ensure a smooth career transition for the impacted employees, 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.
Given that connectivity is going to be paramount during this time from a 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.
To ensure that the journey of upskilling oneself continues for the 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.
We will support impacted employees who have relocated to join Swiggy within the last 1 year by reimbursing the expenses in case they wish to move back.
A dedicated set of HR team members will assist the impacted employees with their queries pertaining to the Care Package, reimbursement and settlements, insurance, and any other relevant areas.
To all impacted teammates, I cannot even imagine how stressful this can 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 Swiggy.