Highlights

  • Dunzo's fresh round of layoff to affect 20% of the workforce
  • Layoff news after Dunzo deferred the payment of June salaries for a second time

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Layoff 2023: Dunzo undertakes third round of layoffs as financial woes escalate

Quick-commerce player Dunzo to undergo third round of layoffs, affecting around 20% of workforce. Deferred June salaries and cashflow issues exacerbate financial woes

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      Layoff 2023: Dunzo undertakes third round of layoffs as financial woes escalate

      In a bid to combat mounting financial troubles, Dunzo, the popular quick-commerce player, has announced plans for yet another round of layoffs, as revealed by the company's co-founder and CTO, Mukund Jha, during an all-hands meeting on July 19.

      This will mark the third time within a span of seven months that the company has resorted to laying off employees to navigate its cashflow issues. The dire situation has put the startup's back against the wall, forcing it to take drastic measures.

      According to estimations made by senior employees, the upcoming layoffs are expected to impact approximately 20% of Dunzo's workforce, equivalent to around 200 employees. Already, in two previous rounds of layoffs, the company had let go of 380 employees.

      During the meeting, Jha asserted that Dunzo currently has a runway of approximately 18 months and boasts a healthy bank balance of $40 million. However, the startup is entangled in debt obligations, preventing it from accessing these funds to address its financial challenges.


      The news of the impending layoffs comes on the heels of an email sent out to Dunzo employees just hours before the all-hands meeting. The email informed the workforce about the deferred salaries for June, as well as outstanding amounts due for July and August. The deferred salaries will now be processed on September 4, a substantial delay compared to the original deadline of July 20.

      In June, the company had already deferred salaries for nearly 50 percent of its workforce, affecting approximately 500 employees. The promise was that these dues would be cleared by July 20. In response to the cash crunch, Dunzo had also imposed a salary cap of Rs 75,000 for June, regardless of the employee's actual salary. Employees falling below the threshold were still assured full payment.

      The repeated deferral of salaries and the constant rounds of layoffs have raised concerns among Dunzo employees about the company's stability and future prospects. The situation remains challenging for both the management and the workforce, as they grapple with the need to restore financial stability while ensuring the well-being of those affected by the layoffs.

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