Dunzo, the online delivery app, has had to trim its workforce by 75 per cent in order to cut costs, as reported by Financial Express. The company has been struggling to reduce expenditure and increase revenue for some time now. Post this round of job cuts, it is left with a team size of 50, having let go about 150.
The impacted employees have been assured that their dues—salaries, severance, leave encashment, and so on— would be cleared once the company is able to procure the required funds.
It was only in April 2024 that the company, amidst its liquidity crisis, had expressed its ambition to achieve its first fully profitable year in FY25. The company had indicated that it would be able to clear all outstanding salaries and TDS payments in batches.
At the time, an e-mail sent to former employees highlighted the company’s imminent transition to profitability. The convenience platform, backed by Reliance Retail, also disclosed plans for team expansion while emphasising a strategic focus on specific categories commencing July 2024. Also, at the time, Dunzo had acknowledge the anticipation and concerns surrounding pending payments and assured prompt response to inquiries, even while requesting patience due to bandwidth constraints.
Earlier, Dunzo had postponed salary payments, citing preparations for obtaining additional funding to fulfil financial obligations. In January, the company informed employees about ongoing efforts to devise a long-term strategy to settle liabilities and was committed to sharing a payment timeline by the end of the month.
