Food delivery platform Swiggy is laying off 380 employees, CEO Sriharsha Majety told the staff on Friday calling it an extremely difficult decision that was taken after exploring all available options.

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He said the growth rate for food delivery has slowed down versus Swiggy’s projections and there was a need to revisit overall indirect costs to hit profitability goals. “Our overhiring is a case of poor judgement, and I should’ve done better here,” he said in a letter to employees.

Swiggy CEO said the firm has Identified many areas for improvement in its pace of execution over the last year. “This increased our communication overhead, and compromised our agility...This meant that instead of doing more with less, we were doing less with more in these cases,” he said.

Swiggy will be shutting down Meat marketplace very soon, Majety said, adding that the firm hasn’t hit product market fit despite iterations.

Meanwhile, those who are laid off will start getting to know about it from today. They will get a cash payout between 3-6 months based on tenure and grade will receive either an assured three months’ pay or notice period, 15 days ex-gratia for every completed year of service and balance earned leave as per policy whichever is higher. “This will assure all impacted employees with a minimum assured payout of three months,” the firm said.

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Joining bonus and retention bonus paid out will be waived off, it said, adding that the annual vesting cliff has been waived off and the laid off employees will also be eligible to participate in the ESOP liquidity programme slated for July 2023.

The medical Insurance cover for them and nominated family members shall remain valid till May 31, 2023.

The laid staff will also be provided career transition support for the next three months and those who relocated in the last one year will have their relocation expenses reimbursed if they choose to relocate to their previous location or permanent address. People will be able to retain their allocated work laptops to help them continue their job search, Swiggy has told employees.

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Also Read: Swiggy loss widens to Rs 3,628.9 crore in FY22; More layoffs expected as cost cutting measure