BENGALURU: Food delivery unicorn Swiggy plans to lay off around 500 cloud kitchen staff, mostly contractual employees, as it looks to conserve cash and increase its runway, according to multiple people familiar with the development.
The layoffs will take place from its cloud kitchens across nearly ten Tier 1 and 2 cities, which mainly operate Swiggy-owned Homely and The Bowl Company.
Although food delivery is categorized as an essential service during the lockdown, many restaurants and cafes have shut or dialled down their service efficiency.
This has impacted Swiggy's cloud kitchen business, which depends mostly on ground workers such as kitchen staff and delivery workers.