Google and Reliance backed Dunzo announces layoffs of 30% staff

Many big giants, including Meta, Twitter, and Amazon, have sacked employees in recent months, claiming cost-cutting measures among other things. Delivery platform Dunzo is the most recent to go on board; it just stated that it will be letting off about 3% of its personnel.

Dunzo, the last-minute grocery and essentials delivery company, has announced a fresh round of layoffs which would impact 30 percent of its workforce. Engineering positions at the organisation have been disrupted by the recent wave of layoffs. Every difficult choice that affects others is always our final resort. According to an official statement from Kabeer Biswas, co-founder and CEO of Dunzo, we had to let go of 3% of our workforce last week.

Notwithstanding the statistics, it is terrible to lose talented coworkers because these are people who decided to develop their careers with Dunzo. We are providing them with the best assistance we can to get them through this change, he added.

In addition, the layoffs were disclosed to the workers in a Wednesday organization-wide call. Then, in the evening, there was a town hall with a Q&A session. The company is continually revising its team structures and network design, the CEO told reporters, in order to increase business efficiency.

The sacked workers' bosses personally notified them of this event. All people who were affected also had one-on-one meetings with their bosses. According to sources, this round of downsizing was done to save expenses and streamline business processes. Competitors of the business, such as Zepto, Swiggy, etc., have also made cuts like these.

The hyperlocal grocery delivery business has downsized before. In order to save expenses, the corporation fired 3% of its employees in January. According to regulatory documents, the firm lost Rs. 464 crore in FY 2022, which is twice as much as the Rs. 229 crore it lost in FY 2021.

In FY 22, the startup's operational income was Rs 54.3 crore and its total costs were Rs 531.7 crore. The company's advertising and promotional costs, which increased by over six times to Rs 64.4 crore from Rs 11 crore in FY21, were one of the main contributors to its expenses. In addition to Reliance, Google also supports the business. Almost 20% of Google has a stake in the business, while Reliance holds a 25.8% interest.