As part of its most recent round of layoffs, Swiggy has announced that it will be terminating 380 employees. The affected employees have received an email from the employer informing them of the proposed layoffs of hundreds of staff. The CEO of the food delivery service, Sriharsha Majety, has apologised for Swiggy's decision to reduce headcounts and provided a number of justifications for the layoffs.

"We’re implementing a very difficult decision to reduce the size of our team as a part of a restructuring exercise. In this process, we will be bidding goodbye to 380 talented Swiggsters. This has been an extremely difficult decision taken after exploring all available options, and I’m extremely sorry to all of you for having to go through with this," the company's CEO said.

The difficult macroeconomic conditions Swiggy is dealing with are one of the main factors highlighted. The business disclosed that the slowing of the expansion of food delivery has led to lower income and profitability. However, Swiggy claims to have sufficient cash on hand to cover expenses. The management has also attributed its choice to fire workers on "overhiring."

"Over the last year, under challenging macroeconomic conditions, companies around the world (public and private ) are adjusting to the new normal, with refreshed investment horizons and accelerated timelines for profitability. We’re no exception here, and have already advanced our own timelines for profitability on food delivery and Instamart. While our cash reserves allow us to be fundamentally well positioned to weather harsh circumstances, we cannot make this a crutch and must continue identifying efficiencies to secure our long-term," the CEO said.