IPO-bound Swiggy is preparing to layoff 400 employees in a restructuring move, people aware of the developments told Moneycontrol. This is the second round of layoffs at the food tech giant.
The Bengaluru-based company had let go of 380 employees in January 2023 and even shut its meat marketplace in a bid to lower costs, Moneycontrol had reported earlier.
The latest cost cut drive is likely to affect around 7 percent of Swiggy's workforce. The company has around 6,000 employees on its payroll, Moneycontrol has learnt.
The tech, call centre and corporate teams are likely to be hit hardest, one of the people cited above said.
The company did not immediately reply to Moneycontrol's queries.
The move to cut costs comes at a time when Swiggy is planning to list on the stock exchanges later this year, While CEO Sriharsha Mejety had told Moneycontrol in Davos earlier this month that IPO operations are underway, he did not give a specific timeline.
Majety told Moneycontrol that the food delivery business has slowed down faster than expected because companies are penetrating deeper into more geographies. As the business grows at a slower clip, Instamart, the company's quick-commerce business, will be Swiggy's growth driver in the years to come, he said.
Swiggy is eyeing a public market listing later this year and has even likely lined up investment bankers for the IPO, Moneycontrol had reported.
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