Swiggy fires 380 employees. CEO says it was an ‘extremely difficult’ decision.

Swiggy, an online food delivery service, laid off 380 employees on Friday as part of a restructuring exercise. The company’s CEO Sriharsha Majety stated that Swiggy overhiring was a case where he had made poor judgments and should have done better.

Majety, the CEO and Co-Founder of Majety, sent an email to employees. He also apologized for the inconvenience caused by the decision.

He stated that the growth rate of food delivery has slowed compared to the company’s projections.

To achieve our profitability goals, we had to review our indirect costs. We had already taken actions to reduce indirect costs such as office/facilities, infrastructure, etc. but we needed to re-evaluate our total personnel costs in order to keep them in line with future projections.

Majety stated in an email that “our overhiring was a case of poor judgment, and I should have done better here.”

He had spoken earlier in the day to a Swiggy town hall.

Swiggy offers cash payouts ranging from three to six month depending on the employees’ tenure or grade as part of its employee assistance program. They will be paid either an assured three-month notice period or pay plus 15 days ex gratia for each year of service.

“This will ensure that all employees affected receive a minimum of three months’ guaranteed payout. Variable pay and incentives up to 100 percent are included. Majety stated in an email that the Joining Bonus and Retention Bonus will be waived.