Swiggy to let go of 400 employees in Round 2 of layoffs ahead of IPO this year

Food delivery startup Swiggy is reportedly cutting about 400 jobs, about 7% of its workforce, as part of its efforts to bolster finances ahead of  its IPO where the firm is likely to raise $1 billion later this year.

The latest round of layoffs, the second from the Bengaluru-based startup, will impact the tech and operations teams.  The firm had let go of 380 employees in January 2023 and shut its meat marketplace to prune costs. 

Swiggy joins the likes Paytm and Flipkart that have restructured teams to cut costs amid a prolonged downturn in the technology sector.

Swiggy reportedly has picked seven investment banks, including Kotak Mahindra Capital, Citi and JPMorgan, Bofa Securities, Jefferies, among others for its IPO processes.

Zomato and Swiggy lead the Indian food delivery market, but in recent quarters Zomato has expanded its market share lead, according to UBS and AllianceBernstein. Zomato held over 60% of the Indian food delivery market, based on app user count, AllianceBernstein said in a note Wednesday.