Swiggy likely to lay off up to 10% of employees after performance review

New Delhi: Online food delivery platform Swiggy is likely to lay off up to 10 percent of its employees, or about 600 workers, after an extensive performance review that was concluded late last year, amid global uncertainties and recession fears.

Sources told IANS that the upcoming layoffs at Swiggy are likely to impact verticals like product, engineering and operation at the company.

The upcoming layoffs are also expected to impact Swiggy's quick commerce delivery service Instamart to reduce cash burn.

The company did not immediately respond to an IANS query on upcoming layoffs.

Earlier reports that surfaced in December, have said that Swiggy may lay off more than 250 employees or up to 5 percent of its workforce, starting January.

However, the number of layoff employees is set to go further up, according to sources, after the completion of the performance cycle in October. The company employs close to 6,000 workers.

In an earlier statement, Swiggy had said there were no layoffs and with every performance cycle, "we expect exits based on performance".

The online food delivery platform's losses doubled to Rs 3,629 crore in FY22 compared to Rs 1,617 crore in the last fiscal year.

Total expenses went up 131 percent to Rs 9,574.5 crore in FY22, according to its annual financial statement with the Registrar of Companies (RoC).

Swiggy's revenue grew 2.2 times to Rs 5,705 crore during FY22 as opposed to Rs 2,547 crore in FY21.

In November last year, global brokerage firm Jefferies said that Swiggy was fast losing market share to its rival Zomato despite offering heavy discounts.

Earlier in 2022, the food delivery platform raised $700 million led by Invesco at a $10.7 billion valuation.