Swiggy will lay off hundreds of cloud kitchen staff next month, Entrackr and TechCrunch reported. While Swiggy did not comment on the exact number of layoffs, Entrackr reported that around 800–900 cloud kitchen staff will be affected. The company also said it will shut some of these kitchens. This comes as the food delivery company tightens operations amid the COVID-19 pandemic. In a statement to MediaNama, Swiggy said:
“As COVID-19 disrupts daily life across the country, the hospitality industry has come under severe pressure. As the lockdown gets further extended, we are evaluating various means to stay nimble and focused on growth and profitability across our kitchens. These include renegotiating contracts with landlords, relocation of certain kitchens to more optimal locations and discontinuing operations at a few kitchens that have been severely impacted since the lockdown came into effect.
“This will unfortunately have an impact on a certain number of kitchen staff who will be fully supported during this transition.”
Swiggy has a thousand cloud kitchens all over India, as per a TechCrunch report. Swiggy did not reveal in its statement how many cloud kitchens will be wound up. It is interesting that Swiggy is tightening its belt on this part of the business as cloud kitchens are exclusively delivery based, and most states seem to be allowing home delivery of food at least in some parts of the day. Notably, Telangana has banned home delivery of food until May 7.
During all this, Swiggy has expanded into grocery home delivery in 125 cities.