Dunzo defers 50% salaries in June, may cut more jobs in 3rd layoff round this year: Report

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.

Kabeer Biswas, co-founder and CEO, Dunzo.(MINT_PRINT)
Kabeer Biswas, co-founder and CEO, Dunzo.(MINT_PRINT)

Read: Dunzo lays off 3% of staff, CEO says ‘learning how to redefine business…

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.

Read: Online food delivery platform Swiggy to lay off 380 employees: Report

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.


    Multimedia journalist with Hindustan Times. Covers India, world, business and tech news with a keen eye for human-interest stories rooted in gender and culture.

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