Last Updated: January 18, 2023, 12:53 IST
In the last couple of months, several tech companies like Meta, Twitter, and Amazon have fired people citing cost-cutting and various other reasons. The latest to join the bandwagon is delivery platform Dunzo, which has announced its decision to fire around 3 per cent of its workforce. In a conversation with Business Today, a former employee said, “About 65 of us, who work out of the Bengaluru office, were called for a meeting last week and told that we’ve been laid off.”
Has Dunzo planned to support the employees fired in this tough time? CEO and Co-Founder Kabeer Biswas talked about it in a conversation with CNBC TV18. He said that the company was extending the best possible support to help the employees in this tough time. According to Kabeer, any decision which impacts the people is tough and always their last option. The CEO signed off saying that irrespective of the number of people that have been fired, they built their careers at Dunzo. He said that it feels extremely sad to see talented colleagues leave the company.
What prompted Dunzo to fire 3 percent of its workforce?
According to reports, Dunzo reportedly incurred a net loss of Rs 464 crore in the financial year 2022. This loss was Rs 229 crore in the previous fiscal year 2021. Dunzo was also struggling to be a popular name amid the rise of the online grocery market. The platform tried to maintain its hold as it re-strategised and scaled down its daily store operations.
Despite these measures, the company failed to make any progress. These constant failures might have forced the company to lay off 3 percent of its workforce. As of now, there is no official confirmation of the number of employees fired by Dunzo.
At present, Dunzo has around 3,000 workers and if 3 percent of the workforce has been fired, it means that 90 employees have lost their jobs.
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