Swiggy Announces 1,100 Workers Lay Off Due to COVID-19
11 hours ago0
Food delivery firm Swiggy said Monday it would lay off 1,100 workers in the next few days, almost 14 per cent of its staff, as the coronavirus pandemic struck its core and cloud kitchen businesses.
He also said the organization had already begun temporarily or permanently closing down its kitchen facilities after the COVID-19 outbreak began.
Swiggy’s move comes days after Zomato’s restaurant aggregator said he would lay off about 13 per cent of his staff.
Swiggy would send all affected workers at least three months’ pay. Besides that, it will also give the client one month’s salary for every year of work. That is going to be above and above the pay for the notice period. Additionally, the food service firm has expanded its ESOP or employee stock ownership scheme to the nearest per cent, which would include the notice period for months. It also eliminated the previous one-year limit for workers less than one-year-old to apply for the program.
Swiggy Extends Health Care Coverage
Swiggy also extended the current health care coverage for affected workers families until 31 December 2020. Bengaluru-headquartered Swiggy ‘s core food supply business was severely affected by the outbreak and is expected to remain affected in the short term.
The organization will either scale off or shut down neighbouring businesses. The project to extremely volatile or not important for the next 18 months, the CEO states. He states the COVID-19 pandemic’s greatest influence is on the cloud kitchen company at Swiggy.
Swiggy would have to slash costs to be able to reach profitability. It is with a lower number of orders than previously expected, Mr Majety said. The company needs to cut costs to “dispose of any more uncertainties” from the uncertainty of COVID-19, he said.
Swiggy’s layoffs came as the country reached the fourth step of a national shutdown. It is to curb the outbreak of the coronavirus pandemic. It brings the economy to a stalemate and forcing several companies to trim operations.