On Friday 15th May, Zomato announced that it will lay-off around 13% of its global workforce which is around 520 people. As it can be understood that this step is taken to reduce the economic impact the company faced due to the COVID-19 outbreak along with the nation-wide lockdown. The company also mentioned a temporary pay cut of up to 50% for its remaining employees from June.
However, the laid-off employees will continue to receive 50% of their salary for the next six months, or until they get a new job, whichever comes first. Their current health insurance is also retained.
Deepinder Goyal, Founder, and CEO of Zomato, in an email to his employees, explained the latest changes. “Our business has been severely affected by the COVID lockdowns. A large number of restaurants have already shut down permanently, and we know that this is just the tip of the iceberg.”
He predicted that due to this pandemic, the number of restaurants would shrink by around 40% over the next couple of months. For this, Zomato is redefining its business strategy and making a “complete shift” towards becoming a transactions-first company, noted Goyal.
Via: Gadgets 360
The company is laying off about 1,000 employees. This was informed to the employees through an internal email from Swiggy’s Co-founder and CEO Sriharsha Majety. The email later was published in the company’s blog post.
“We unfortunately have to part ways with 1100 of our employees spanning across grades and functions in the cities and head office over the next few days. T his is easily the hardest and longest deliberated decision the management team and I have been faced with over recent times.” – Sriharsha Majety said.
The company mentioned that it will be providing the employees with three months of financial support regardless of their notice period. They will also be getting an extra month of benefit based on their years of experience with the company. For example, an employee who has spent 5 years with Swiggy will get 8 months of salary.
Apart from this salary benefit, employees will also be provided with healthcare and wellness benefits. The details are given below:
Healthcare and Wellness Benefits:
- Medical Insurance cover for the laid-off employees’, their nominated family members, and parents till the end of 2020.
- Accident and Term insurance until the end of this year.
- A Wellness Assistance Programme to ensure the physical, emotional/mental, and financial well-being of impacted employees and their families, providing unlimited tele/video consultation access to experienced doctors, counselors, and financial advisors till this year.
Majety also mentioned that Swiggy has planned to shut down adjacent businesses that won’t be highly relevant for the next 18 months. This is the company’s cloud kitchen business.
Majety said, “The biggest impact here is on the cloud kitchens business, with many unknowns about volumes through the year. Since the onset of COVID, we have already begun the process of scaling down our kitchen facilities temporarily or permanently, depending on their outlook and profitability profile.”
Source: Swiggy Blog