Bangalore: Indian food delivery startup ‘Swiggy’ said Monday it would lay off 1,100 employees, or nearly 14 per cent of its workforce. This will be to cut costs. The weeks-long nationwide lockdown to curb the coronavirus outbreak has hit demand for online food ordering said Swiggy.
Official statement
The company, backed by South African internet giant Naspers (NPNJn.J), also said it will scale down adjacent businesses. Swiggy has already shut several of its cloud kitchens. These facilities only cater to takeaway orders – temporarily or permanently.
“The core food delivery business has been severely impacted and will stay impacted over the short term. However, it is expected to start growing again after that,” said Sriharsha Majety. He is the co-founder and chief executive at the company.
Restaurant industry hit hard
Swiggy, one of India’s best known startups, is among many that are laying off employees. There are many companies that are reshaping their business in response to the COVID-19 pandemic. The outbreak has forced 1.3 billion Indians indoors and crippled business.
India is currently under a two-month lockdown. Though several curbs are being eased, public places such as restaurants remain closed. It is hurting the hotel industry as well as companies such as ‘Swiggy’ and main rival ‘Zomato’.
Agencies