Layoffs 2023: Reliance and Google-backed Dunzo initiates fresh round of layoffs to reduce costs

Dunzo, the quick commerce platform backed by Reliance and Google, is once again implementing a fresh round of layoffs in an effort to trim costs, as per a Business Today report.

The company has informed affected employees that they will receive their full and final settlements in January. The exact number of employees impacted by these layoffs remains undisclosed, but the report suggests that multiple teams within the company have been affected.

An employee from Dunzo's engineering team revealed to bt,"The company has said that the full and final settlement will take place in January." Another employee confirmed this development and added that affected employees have the option to either serve their notice period in October or skip it altogether. Regardless of the choice made, the full and final settlement will include pending salaries from the past months, which have been deferred since June, along with a 15-day severance package.

Dunzo had previously laid off 30% of its workforce earlier this year after securing $75 million in funding. Additionally, the company had announced plans to pivot its business model and shutter 50% of its dark stores across the country.

Recent reports indicate that Dunzo is in advanced discussions to secure a funding round of $25-30 million, with key investors such as Reliance Retail, Google, and Lightrock participating. Reliance Retail already holds a significant 25.8% stake in Dunzo, making it the largest shareholder.

In fiscal year 2022, Dunzo reported a total revenue of ₹67.7 crore, with expenses amounting to ₹531.7 crore. The company's operating revenue was ₹54.3 crore, resulting in a consolidated loss of ₹464 crore. Employee benefit expenses emerged as the biggest cost driver at ₹138 crore, followed by advertising and promotional expenses, which surged nearly sixfold compared to the previous fiscal year.

Founded in 2014, Dunzo has raised close to $500 million from a consortium of investors, with Reliance Retail and Google holding the largest stakes at 25.8% and approximately 19%, respectively, in the quick commerce company.

Also Watch: Dunzo faces salary delays; Reschedules payments to October