• By Vaamanaa Sethi
  • Sat, 22 Jul 2023 10:53 AM (IST)
  • Source:JND
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Reliance Retail-backed quick commerce platform Dunzo has reportedly announced a fresh round of layoffs, affecting over 150-200 employees. This is the third time the e-commerce company has handed over the pink slip to its employees, according to a report by ET.

The quick commerce platform is currently grappling with cash flow issues. Over the last eight months, the company has fired close to 400 employees. It was reportedly forced to scale down its consumer-facing business Dunzo Daily and moved its focus to B2B vertical Dunzo Merchant Services.

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As per ET report, the founder and chief technology officer (CTO) of the e-commerce company officially told the employees about the layoffs in a short meeting on Friday, July 21. The third round of layoffs led to internal cost-cutting of 30-40%.

On July 19, CTO Mukund Jha told the employees that more jobs are going to be cut without informing the total number of employees to be impacted. In April, it had sacked over 30% of its workforce and shut down 50% of its dark stores.

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“For those team members who were expecting the balance pay-outs of their June salary during this week, we regret to inform you that this has been delayed. The pending salaries for June will now be paid on September 4th, 2023,” Dunzo told employees in a note on Wednesday.

Few days back, Dunzo was seeking additional Rs 165 crore ($20 million) from Reliance Retail, which is its largest shareholder. The reports circulated after the cash-strapped quick commerce startup fell short of its target to raise $75 million by offering convertible notes.

Reliance Retail, which owns 25.8% stake in Dunzo, and Google, which has less than 20% shareholding, were the only two investors who subscribed to the convertible notes and this had caused adverse cash flow situation in the company.

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