In the wake of Coronavirus epidemic, Food delivery company Swiggy said it will lay off 1,100 employees over the next few days.
“Today is one of the saddest days for Swiggy as we have to go through an unfortunate downsizing exercise,” Swiggy co-founder and CEO Sriharsha Majety wrote. He also said the firm had already begun shutting down its kitchen facilities temporarily or permanently since the onset of the outbreak.
“We unfortunately have to part ways with 1,100 of our employees spanning across grades and functions in the cities and head office over the next few days,” he said.
Swiggy will give at least three months of salary and it will also give one month of salary for each year of employment with the company. This will be over and above the notice-period pay.
“While Covid (COVID-19) might have long-term tailwinds for the delivery business and digital commerce when things settle eventually, nobody knows how long the uncertainty will last,” Swiggy CEO said in the communication to staff.
The company will either scale down or shut down adjacent businesses that are expected to be highly volatile or will not be relevant for the next 18 months, the CEO said. He said the biggest impact of the COVID-19 pandemic is on Swiggy’s cloud kitchens business.