30%  job cuts at Dunzo; engineering roles  impacted most

Based on regulatory filings, Dunzo's losses for FY22 rose to Rs 464 crore, a significant increase from the Rs 229 crore loss in FY21. This increase in losses may have contributed to the company's decision to carry out a fresh round of layoffs.


Dunzo, an Indian startup that provides last-minute grocery and essential delivery services, has reportedly laid off 30 per cent of its workforce in a new round of downsizing. According to sources, the layoffs are primarily impacting engineering roles within the company. 

The announcement was made during an organisation-wide call followed by a town hall with a Q&A session. The affected employees were subsequently informed of the decision during individual meetings with their managers.

This is not the first time Dunzo has downsized in an attempt to streamline its operations and cut costs. In January of this year, the company laid off 3 per cent of its staff. The latest round of layoffs comes after the company’s FY22 losses increased to Rs 464 crore, up from Rs 229 crore in FY21, according to regulatory filings. 

The startup’s total expenses in FY22 were Rs 531.7 crore, while its operating revenue was Rs 54.3 crore. One of the major expenses was the company’s advertising promotional expense, which increased sixfold from Rs 11 crore in FY21 to Rs 64.4 crore in FY22.

Dunzo is not alone in cutting costs. Similar measures have been taken by its competitors, such as Zepto and Swiggy. The company is backed by Google and Reliance. Google holds a 20 per cent stake in the company, while Reliance owns 25.8 per cent.

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