Jul 11, 2023 09:55 PM IST
The move comes after the logistics and delivery platform sacked about 400 employees in the first half of the year.
Google-backed Dunzo has delayed half of the salaries of workers at various levels for the month of June amid a cash crunch, according to media reports. The on-demand delivery company, which employs nearly 1,000 people, has deferred salaries to about 500 employees.
The top leadership will be impacted the most, the reports added. The quick commerce company, backed by Reliance Retail also, has informed employees wielding managerial positions and above that the pending salaries will be paid after July 15. The reports added that employees were paid a maximum of only ₹75,000 in June.
The move comes after the logistics and delivery platform sacked about 400 employees in the first half of the year. After raising USD 75 million in April, the company again slashed about 30 per cent of its staff. According to reports, a third round of layoffs may hit the Dunzo workforce this month.
After the second round of layoffs, CEO Kabeer Biswas in a company-wide town hall meeting announced a pivot in the business model by closing half of its dark stores in the country. Dark stores are small warehouses used to deliver orders in a short time frame.
Financial records from the Ministry of Corporate Affairs filings for the fiscal year 2021-22 revealed that despite registering a total revenue of ₹67.7 crores, the expenses incurred amounted to ₹531.7 crores, the LiveMint reported. The company also experienced a consolidated loss of ₹464 crores, twice that of the previous year.
The largest expense for the company was employee benefits – ₹138 crores – followed by advertising expenses, which soared to ₹64.4 crores.
Currently, Reliance Retail owns 25.8 percent of Dunzo while Google holds a stake of under 20 percent.
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