Dunzo Layoffs: Reliance Retail-Backed Online Delivery Firm Lays Off 150 Employees, Assures To Pay Severance After It Secures Funding
Reliance Retail-backed Dunzo laid off 150 employees amid cash crunch. The company said it would pay the severance, leave encashment, pending salaries and other dues once it gets necessary funds.
Bengaluru,Ā September 1:Ā Dunzo, a Reliance Retail-backed online delivery firm, has laid off 150 people in its new round of layoffs. The Dunzo layoffs reduced the total workforce to 50Ā amid financial struggles. The Bengaluru-basedĀ deliveryĀ company sent emails toĀ its employees on Friday andĀ assured them that it would pay them their pending salaries, severance, leave encashment, and any otherĀ remaining dues as soon as it securesĀ the required funds.Ā
According toĀ aĀ reportĀ byĀ Financial Express,Ā Dunzo had been facing a cash crunch and urgently required funds to sustain its operations. Therefore, itĀ laid off 150 employees.Ā Dunzo layoffs were reportedlyĀ announced as part of the company'sĀ broader efforts to control its costs. With this move,Ā theĀ online deliveryĀ platform would likely generate cash flow and address the liabilities.Ā Layoffs Not Coming Due to GenAI: Indian Tech Giants Including Infosys, Wipro, HCLTech Focused on Upskilling Employees Than Laying Them Off.
Once DunzoĀ secures the funding, it said it would use it to pay the overdue salaries of the working and former employees and outstanding payments to its vendors. The report revealed that theĀ company told its workers that it was about to close a transaction and was at the "final stage."Ā If this had been done, theĀ company would have settled the dues within 10 to 15 days, said the report.
FollowingĀ this, the Dunzo payroll team notified the employees aboutĀ unexpectedĀ struggles to secureĀ the needed funds and requested them not to pursue any legal action. TheĀ company also warned the employees that the ongoing process (of obtaining funds) could be delayed even more if they go for any legal action.Ā Qoo10 Layoffs: Singaporeās E-Commerce Company Lays Off Nearly 80% of Staff Amid Challenging Market Condition and Restructuring.
Dunzo laid offĀ several employees in 2023Ā and hadĀ gone through several rounds to secure funding. The reportĀ highlighted that it was once valued at USD 775 million but facedĀ struggles to secure the necessary funds. Despite Reliance Retail holdingĀ a 25.8%Ā stake in the company, theĀ online delivery firmĀ faced troubleĀ achieving profitability.Ā
(The above story first appeared on LatestLY on Sep 01, 2024 06:10 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).