Fresh round of layoffs may take place at Dunzo

To address financial challenges, the company has also implemented a salary cap of Rs 75,000 per month for all employees, irrespective of their previous pay


Dunzo, an Indian-based online delivery platform, is currently facing significant challenges and is planning to implement further cost-cutting measures. Insiders familiar with the situation have revealed that the company intends to conduct another round of layoffs as part of its efforts to streamline operations and improve its financial stability. The decision to reduce the workforce comes in response to cash-flow issues that have placed Dunzo in a difficult position.

In an attempt to manage its financial constraints, Dunzo recently imposed a salary cap of Rs 75,000 per month for all employees, regardless of their previous compensation package. However, those earning less than this amount will continue to receive their full income.

Additionally, the company deferred the payment of June salaries for approximately 500 employees, representing about 50 per cent of its workforce. Dunzo’s management, including CEO Kabeer Biswas, assured that the salary cap was only applicable for June and that all outstanding dues would be cleared by July 20.

The decision to implement these measures is likely to have a significant impact on senior employees within the organisation. According to an employee interviewed by Moneycontrol, the staff members were not informed in advance about the salary cap and were only notified on the day they were supposed to receive their salaries.

In January 2023, the company laid off 3 per cent of its workforce, followed by a more substantial reduction of 30 per cent in April. These restructuring efforts were aimed at aligning the company’s resources with its current financial realities.

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