Indian food delivery startup Swiggy plans to cut 6% of its workforce as part of cost-cutting measures and to enhance profitability before its upcoming initial public offering (IPO) where the firm is likely to raise $1 billion.
The workforce reduction is expected to affect approximately 350-400 employees across various teams, including technology, call center, and corporate roles.
Last year, the company backed by Softbank Group reduced its workforce by approximately 380 employees, attributing the decision to challenging macroeconomic conditions.
Swiggy, which postponed its initial public offering (IPO) last year due to market weakness, is now targeting an IPO between July and September.
Swiggy is following the footsteps of Paytm and Flipkart, restructuring its teams to curtail expenses amid the prolonged downturn in the technology sector.
For its IPO processes, Swiggy has purportedly selected seven investment banks, including Kotak Mahindra Capital, Citi, JPMorgan, Bofa Securities, Jefferies, among others.
