Dunzo, a prominent quick-commerce company, has recently made headlines with the announcement of another round of layoffs, affecting approximately 150-200 employees, which amounts to 30-40% of its workforce. This move follows two prior rounds of layoffs earlier this year, totaling close to 400 employees. The layoffs were officially communicated to the affected employees by co-founder and Chief Technology Officer, Mukund Jha, in a brief meeting held on a recent Friday.
Impact on Employee Salaries:
In addition to the layoffs, Dunzo has introduced changes related to employee salaries. Those affected by the latest round of layoffs are facing delays in receiving their June salaries. The company has presented these employees with two options: they can either resign immediately and receive their full and final settlement in January or February, or they can resign with a notice period and receive their due September salary in October, along with the full and final settlement in January or February.
Furthermore, Dunzo had previously informed its workforce that it would defer unpaid salaries for June and July to September, paying them along with the August salary.
Cost-Cutting Measures:
Beyond the workforce reductions and salary adjustments, Dunzo appears to be implementing other cost-cutting measures. Reports suggest that the company may be considering relocating to a smaller office space to reduce rental expenses. Additionally, the reduction in team members is contributing to the need for a downsized office space.
Funding Round on the Horizon:
Interestingly, despite these cost-saving measures and layoffs, Dunzo is reportedly in advanced discussions to secure a funding round in the range of $25-30 million. Key investors, including Reliance Retail, Google, and Lightrock, are expected to participate in this round. It is worth noting that Dunzo had previously explored raising approximately $20 million from its largest investor, Reliance Retail.
The recent round of layoffs at Dunzo, affecting a significant portion of its workforce, underscores the challenges faced by businesses in the dynamic and competitive quick-commerce industry. While the company is taking steps to reduce costs, it also continues to seek fresh investments to support its growth and operations. The future trajectory of Dunzo, amidst these developments, will be closely watched as it navigates a changing landscape in the quick-commerce sector.
