Dunzo, an Indian startup that offers last-minute grocery and vital delivery services, reportedly fired 30% of its staff in a new round of downsizing. The company’s engineering positions are reportedly most affected by the layoffs.
The announcement was made during a town hall with a Q&A session that followed an organization-wide call. The decision was later explained to the impacted workers during individual meetings with their managers.
Dunzo has downsized before in an effort to improve efficiency and lower expenses. The company fired 3% of its employees in January of this year. According to regulatory filings, the company’s FY22 losses grew to Rs 464 crore from Rs 229 crore in FY21, which led to the most recent round of layoffs.
The firm spent Rs 531.7 crore in total in FY22, compared to Rs 54.3 crore in operating revenue. The advertisement for the company was one of the major expenses.
Not just Dunzo is attempting to reduce expenses. Competitors like Zepto and Swiggy have implemented similar policies. Google and Reliance are the company’s investors. Google and Reliance hold a 20 per cent and 25.8 per cent stake in the company respectively.