Dunzo, the online delivery app, has had to reduce its workforce by 75 percent in order to cut costs, as reported by Financial Express. The company has been struggling to reduce expenses and increase revenue for some time. After this round of job cuts, it is left with a team size of 50, having let go of about 150 employees.
The impacted employees have been assured that their dues—salaries, severance, leave encashment, and so on—will be cleared once the company is able to procure the required funds.
It was only in April 2024 that the company, amidst its liquidity crisis, had expressed its ambition to achieve its first fully profitable year in FY25. The company had indicated that it would be able to clear all outstanding salaries and TDS payments in batches.
At the time, an email sent to former employees highlighted the company’s imminent transition to profitability. The convenience platform, backed by Reliance Retail, also disclosed plans for team expansion while emphasizing a strategic focus on specific categories commencing July 2024. Also, at the time, Dunzo had acknowledged the anticipation and concerns surrounding pending payments and assured prompt responses to inquiries, even while requesting patience due to bandwidth constraints.
Earlier, Dunzo had postponed salary payments, citing preparations for obtaining additional funding to fulfill financial obligations. In January, the company informed employees about ongoing efforts to devise a long-term strategy to settle liabilities and was committed to sharing a payment timeline by the end of the month.
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