New Delhi: The process of layoffs by startups continues. Now the name of car repair startup GoMechanic Layoff has also been added to the list of companies laying off employees. The company has shown the way out to 70 percent of its staff in one stroke. Apart from this, food delivery company Swiggy Layoff is also planning to lay off employees on a large scale. 6 thousand employees work in Swiggy. Swiggy’s competitor Zomato Layoff has already reduced its workforce by 3 percent.
According to a report in the Financial Express newspaper, Swiggy will lay off 10 percent of its employees. More employees will be removed from the product, engineering, and operations departments. The food unicorn conducted a performance review in October and put a number of employees on a performance improvement program. Swiggy also intends to bring an IPO. But, due to the poor performance of the shares of tech companies in the stock market, Swiggy has decided not to submit the paper to SEBI for public issue yet.
A source told that Swiggy has a number-based rating system. Employees whose rating is two or less are placed in PIP. There is a lot of work pressure on the company employees for the last 6 months. The reason for this is that the company wants to come in profit before bringing its public issue.
GoMechanic fired 70 percent of its employees
The name of GoMechanic, a company that provides automobile after-sales service, has also been added to the list of retrenchment startups. The company’s co-founder Amit Bhasin informed through a LinkedIn post on January 18 that the company has laid off 70% of its employees. Bhasin wrote, “The co-founders taking full responsibility for this have decided to raise funds and restructure the business. Restructuring is painful. It is unfortunate that we have had to lay off 70 percent of our employees.”
There will be a forensic audit
Meanwhile, there is also news that Sequoia Capital, GoMechanic’s biggest investor company, has decided to conduct a forensic audit of the company’s balance sheet after discovering financial irregularities in the GoMechanic company. Bhasin has also written in his post that a third-party company will do the auditing of the business.
