He also announced that the company is also shutting down its meat marketplace. He, however, clarified that while the vertical will cease to exist in the near future, meat delivery will still be available via its Instamart service.
Swiggy to restructure organisation, CEO admits to overhiring
In the internal note, Majety said that Swiggy will go for team restructuring as its growth has not aligned with the projections. He said, “We’re implementing a very difficult decision to reduce the size of our team as a part of the restructuring exercise. In this process, we will be bidding goodbye to 380 talented Swiggsters.” Taking the blame for overhiring, he wrote, “Our overhiring is a case of poor judgement, and I should have done better here.”
There were reports in December that Swiggy may lay off more than 250 employees or up to 5 per cent of its workforce, starting January. However, in a statement, Swiggy had said there were no layoffs and with every performance cycle, “we expect exits based on performance.”
Meat marketplace to be shut down for failing to find its place
On shutting down the meat service, Majety said, “While we continue to be fully committed to exploring new business opportunities, we have also taken a harder look at some of our existing new verticals. Effective very soon, we will be shutting down our Meat marketplace.” He explained that the decision is down to the vertical failing to be a product market fit. However, he commended the effort of the team behind the service, saying it performed “exceptionally well with solid inputs.”
As for the severance, all affected employees will get three to six months’ salary, on the basis of their tenure, with at least three months’ salary guaranteed.
