Bangalore based food delivery startup, Swiggy, is planning to layoff over 400 employees, ahead of its IPO launch. For Swiggy, this is second round of layoff, to improve its financial ahead of its IPO launch.
Food delivery company Swiggy is planning to cut about 400 jobs, which is about 7% of its total workforce. This move is part of Swiggy’s efforts to improve its financial situation before its upcoming IPO, where it aims to raise $1 billion later this year.
The job cuts will mainly affect the tech and operations teams. Swiggy had previously let go of 380 employees in January 2023 and closed its meat marketplace to reduce costs. Similar to other companies in the tech industry, Swiggy is restructuring its teams to manage expenses during a challenging period.
Swiggy is currently a major player in the Indian food delivery market, competing with Zomato. However, Zomato has been increasing its market share lead in recent quarters, holding over 60% of the market, according to reports. Swiggy has reportedly selected several investment banks for its IPO processes, including Kotak Mahindra Capital, Citi, JPMorgan, Bofa Securities, and Jefferies.