Mass transit solutions provider SWVL has announced to reduce its staff by around 32 per cent to increase efficiencies and cut central costs to turn cash flow positive in 2023, as the economic slowdown affects companies and tech startups across the globe. Still working.
The Dubai-headquartered mobility startup has more than 1,330 employees and a layoff of 32 percent of its workforce means more than 400 people will lose their jobs.
“Such reductions will focus on roles that have been automated by the company’s investments in engineering and product and support functions,” the startup said in a statement late Monday.
SWVL said it plans to provide monetary, non-monetary and job placement support to help some of its employees transition to new roles.
It is reported that in the month of May alone, more than 15,000 workers have lost jobs in the tech sector in the US, while more than 7,000 employees have been fired by Indian startups.
Companies such as Calarna, Getir, Gorillas and Bolt have fired some of their employees.
Since March 2020, when the Covid-19 pandemic began, 1.25 lakh employees have been laid off by around 718 startups globally.
Tech companies are facing many issues like rising inflation, fear of economic slowdown, Russia-Ukraine war.
The situation is likely to worsen as a recession approaches and funding dries up.