Dunzo Implements Fresh Layoffs as Cost-Cutting Measure

Dunzo Implements Fresh Layoffs as Cost-Cutting Measure

Dunzo, the quick commerce company backed by Reliance and Google, has reportedly carried out a new round of layoffs as part of its cost-cutting strategy. While the exact number of job cuts remains unconfirmed, several teams within the company are said to have been affected. Employees who have been let go have been informed that they will receive their full and final settlements in January. This move comes after Dunzo previously deferred a portion of its employees’ salaries due to financial constraints.

One employee, speaking about the situation, stated, “The full and final settlement will include the pending salaries of the past months, which were deferred since June, and 15 days severance.” Another mentioned that separated employees have the option to skip the notice period and that the settlement would occur in January.

In July, Dunzo deferred salaries amid a cash crunch, and earlier this year, the company laid off 30% of its workforce after securing a $75 million funding round. It also decided to close 50% of its dark stores across the country as part of a business model pivot. Dunzo is reportedly in advanced stages of closing a $25 million to $30 million funding round with key investors including Reliance Retail and Google participating.

Financial filings for FY22 show that Dunzo reported a total revenue of Rs 67.7 crore, with expenses at Rs 531.7 crore and a consolidated loss of Rs 464 crore. Employee benefit expenses were the company’s largest expense driver.

Dunzo, founded in 2014, has raised nearly $500 million from investors, with Reliance Retail holding a 25.8% stake and Google owning around 19% in the company.

Meituan Plans Share Buyback Valued at Up to $1.0 Billion Author: Borys Gitelman
Deliveroo Sees Expansion Into Non-Food Driving Growth Author: Borys Gitelman
Meituan’s Profit Tripled on Rising Chinese Consumption Author: Borys Gitelman
Instacart Adds Peacock As First-Ever Streaming Partner Author: Borys Gitelman
Delivery Hero-owned Baemin to exit Vietnam in December Author: Borys Gitelman
Uber Shuts Down Instant Delivery In NYC Author: Borys Gitelman
Swiggy gears up for $1 billion IPO, SoftBank may sell stake Author: Borys Gitelman
The EU Wants to Fix Gig Work, but Uber Has Its Own Ideas Author: Borys Gitelman
Just Eat Growth Momentum Stalls In Ireland Author: Borys Gitelman
Amazon to sell Hyundai vehicles online starting in 2024 Author: Borys Gitelman
Britain’s Ocado secures first deal beyond grocery retail Author: Borys Gitelman