PerkyNoodle

Swiggy possible layoffs

This may sound like a dumb question, but why do these companies fire just before the IPO? isn't an IPO a good thing? More cashflow. Shouldn't they be taking care of their employees who made it reach there?

What exactly is the thought process behind this mass layoff before IPO?

8mo ago

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ZestyQuokka

Stealth8mo

Even with Swiggy news, there's Zomato

Their paid SEO game is crazy

SquishyQuokka

Gojek8mo

Swiggy is the dark horse that is better than Zomato. Zomato is a sh** company running on InfoEdge fumes.

FluffyNugget

Swiggy8mo

Idk I regularly use both and I feel both are pretty equal in terms of service. Also zomato not only have greater market share but also have posted decent profits recently

SleepyBanana

PhonePe8mo

@salt why hate Zomato? Any reason?

CosmicBoba

Yahoo8mo

The whole point of IPO is to get filthy valuations. So to get it there are two ways :

Become extremely high revenue and profit making business machine , which is not possible if you’re not like of Nvidia 🙂
Cut cost 💲, every saving is worth equal earnings.

So company tend to do major cost cut before IPO to improve balance sheet on paper to get valuations (honestly what they don’t deserve)

During IPO every team is vulnerable if they aren’t directly contributing towards revenue generation.

GoofyDonut

Stealth8mo

In short, it makes line go up!

Companies after a certain stage only care about the elite "stake holders", CEO's role literally becomes maximise returns for these ~~leeches~~ holders. ~~Firing~~ Cutting costs increases the said returns, hence it's a popular strategy pre-IPO

FluffyCupcake

Amazon8mo

When you go for IPO, all eyes are on you.

From zee business to CNBC, everyone will pick prospectus to dissect the cost elements. Easiest way for any company to reduce cost elements is by layoff and quick gains in the bottom line. Case in point is - Oyo! When they were trying to file for IPO, they literally went into maintenance mode (for some verticals), laying off majority of engineering & product talent. One of my close friends at a senior level had to move out for similar reasons.

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Curated from across

News Discussion10mo

Why is this common now? Big hire after mass layoffs

Have been seeing this as of recent, is it change in direction - new leadership to drive that

medianews4u.com

Ashwath Swaminathan joins Swiggy as Chief Growth & Marketing Officer

Swiggy has announced a significant addition to its senior leadership team with the appointment of...

Layoffs10mo

Layoff Parameters

What are generally the metrics used during layoffs ?

Is it division by division or each employee is vetted for his performance and contributions ?

Do high salaried folks generally targeted even if they have good performance and history...

Layoffs10mo

IPO-bound Swiggy to slash 400 jobs in second round of layoffs

moneycontrol.com

IPO-bound Swiggy to slash 400 jobs in second round of layoffs

It had let go of 380 employees in January 2023 and even shut its meat marketplace in a bid to low...

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