On Monday, Swiggy announced that it would be to laying off 1,100 employees across different cities, as the coronavirus pandemic is continuously affecting the business.

Sriharsha Majety, the CEO and co-founder of the food company announced in a virtual meeting: “All impacted employees will receive at least three 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.”

The food company also said that if a certain employee’s notice period is three months and they’ve spent five years with the company, they will get eight months of salary. The company will inform about lay offs in one-to-one video calls.

It will also reduce or completely shut down businesses that are either going to be highly unstable or the ones which would not be relevant for the next 18 months.

“The biggest impact here is on the Cloud kitchens business, with many unknowns about volumes through the year. Since the onset of Covid-19, we have already begun the process of shutting down our kitchen facilities temporarily or permanently, depending on their outlook and profitability profile,” Majety stated. “We are already operating at significantly lower levels on our staffing and physical infra than our earlier footprint, and will continue to optimize before we get more clarity on order volumes for food delivery”.

Last week, Zomato announced to lay off nearly 13 per cent of its workforce via Zoom call and announced salary cuts for the rest of the employees for next six months starting from June.