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Swiggy to axe 1100 employees,will provide financial and healthcare benefits

 Now it is the turn of Swiggy after zomato. Food tech major Swiggy has decided to restructure its man power by reducing 1,100 of its employees across various grades and functions in the cities and head office over the next few days.

 

“This is easily the hardest and longest deliberated decision the management team and I have been faced with over recent times,” said Sriharsha Majety, CEO of Swiggy in a emotion driven blog post full of compassion.

 

On the lines of Zomato, Swiggy is also providing financial support to the impacted employees. For instance, the impacted employees will receive at least 3 months of salary irrespective of their notice period or tenure. The company also plans to offer an extra month of ex-gratia in addition to their notice period pay, working out to between 3-8 months of salary depending on the tenure.

 

Swiggy’s standard Esop policy has a  one year cliff and annual vesting, however, it will now extend Esop vesting to the nearest quarter (including the months of the notice period) and waive off the one year cliff for those who have not completed one year.

 

During the current health crisis, it will ensure the health and medical facilities to those employees, which include medical and term insurance.

 

Given that connectivity is going to be paramount during this time from a career transition standpoint, impacted employees will be enabled to retain their allocated work laptops and be supported on mobile phone communication allowance for the next 3 months.

 

Following  is the details of package  mentioned in post sent out to employees via email  which enlisted the business decisions of reducing expenses by shutting down adjacent businesses also.

 

DETAILS OF THE CARE PACKAGE

 

Financial Support

 

While our primary objective is to ensure that all employees who are leaving us are able to meet their financial commitments and expenses till they find another role, we also want to display our gratitude to team members who have worked with us for longer and have made sustained contributions over the years believing in the mission. The details are below:
 

  • All impacted employees will receive at least 3 months of salary irrespective of their notice period or tenure.
     
  • For every year they have spent with us, we will be offering an extra month of ex-gratia in addition to their notice period pay, working out to between 3-8 months of salary depending on the tenure.E.g. If someone’s notice period is 3 months and they’ve spent 5 years with us, they will get 8 months of salary.

Equity

 

Many team members have joined Swiggy believing in the growth potential of the company and even preferred ESOP to cash at the time of joining. While our standard ESOP policy has a 1-year cliff and annual vesting, we will now be extending ESOP vesting to the nearest quarter (including the months of notice period) and waive off the 1-year cliff for those who have not completed 1 year.

Healthcare & Wellness Benefits

 

During the current health crisis, we want to ensure we provide all possible support for the medical care of impacted employees and their families. To facilitate this, we are providing:

 

  • Medical Insurance cover for them and nominated family members till 31st December 2020. Additionally, we will also be providing insurance cover for their parents.
     
  • Accident and Term insurance till 31st December 2020.
     
  • A Wellness Assistance Programme to ensure the physical, emotional/mental and financial well-being of impacted employees and their families, providing unlimited tele/video consultation access to experienced doctors, counsellors and financial advisors till 31st December 2020.

Career Transition Support

We want to ensure a smooth career transition for the impacted employees, and want to help them find new opportunities. This is something the outplacement cell has been working really hard on and I hope we can get a large percentage of impacted employees placed through this effort. I will also be sharing an update on our outplacement effort at a later time.
 

  • We will have a dedicated and fully-trained talent acquisition team assisting impacted employees round the clock in identifying suitable opportunities and providing necessary career support for the next 3 months.
     
  • We will also offer free outplacement support from RiseSmart for mid-senior management employees, giving full access to their career coaching services, content and personalized job search.

Connectivity Support

 

Given that connectivity is going to be paramount during this time from a career transition standpoint, impacted employees will be enabled to retain their allocated work laptops and be supported on mobile phone communication allowance for the next 3 months.

 

Learning Support

 

To ensure that the journey of upskilling oneself continues for the impacted employees, we will be providing free LinkedIn Learning access for the next 3 months, for both technical and professional skill development. We have also curated and assigned content to them around resume building, interviewing skills, emotional intelligence, etc. that will help them with their career transition during this time.

Relocation Support

 

We will support impacted employees who have relocated to join Swiggy within the last 1 year by reimbursing the expenses in case they wish to move back.