Swiggy feels the heat, employees to be laid off

The online food-delivery platform is contemplating closing down certain kitchens and downsizing the low-volume kitchens for operational ease.

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Organisations, new-age startups in particular, have tasted the impact of the coronavirus outbreak, and the lockdown that followed. Most are now seriously finding ways to continue with their business. But, when things don’t go as planned, certain decisions have to be taken, which may not always be in favour of the employees.

For instance, due to less demand in orders, online food-delivery platform, Swiggy, is planning to lay off some of its employees, including part of the workforce at its private kitchen brands — The Bowl Company and Homely. 

Speaking to HRKatha, a Swiggy spokesperson said, As COVID-19 has disrupted daily life across the country, the hospitality industry has come under severe pressure. With the lockdown getting further extended, we are evaluating various means to stay nimble and focus on growth and profitability across our kitchens. This involves renegotiating contracts with landlords, relocating certain kitchens to more optimal locations and discontinuing operations at a few kitchens that have been severely impacted since the lockdown came into effect.”

“As the restrictions in the red zones remain the same, we are planning to shut down some kitchens for the time being and relocate some to feasible locations, so that they can be operational,” the spokesperson added. 

The spokesperson also mentioned that there are a certain number of kitchen staff will be hugely impacted, but will be fully supported during this transition. 

As the Company is still in the planning process, the exact number of workers who will be affected by the closure of these kitchens is yet to be disclosed. 

As per a company insider, the online delivery platform is currently focusing on downsizing very low volume kitchens in these difficult times. 

Even after being included in the list of essential services by the Government, Swiggy was unable to manage the much-required food orders as the majority of the restaurants remained shut. There has been a drop of almost 60 per cent in orders for the online food ordering and delivery platform.

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