Mass transit solutions provider Swvl has announced it will reduce its headcount by approximately 32 percent to enhance efficiency and cut central costs to turn cash flow positive in 2023, as economic downturn hits companies and tech startups worldwide.
The Dubai-headquartered mobility startup has over 1,330 employees and laying off 32 per cent of its workforce means that over 400 people will lose their jobs.
"Such reductions will focus on roles which have been automated by investments in the company's engineering and product and support functions," the startup said in a statement late on Monday.
Swvl said it plans to provide monetary, non-monetary and job placement support to help with the transition of certain of its employees to new roles.
The news comes as more than 15,000 workers have lost jobs in the tech sector in the US in the month of May alone, while more than 7,000 employees have been fired by the Indian startups to date, as they navigate global macro-economic factors.
Companies such as Klarna, Getir, Gorillas and Bolt have fired some of their workforce.
Since March 2020 when the COVID-19 pandemic started, 1.25 lakh employees have been laid off by around 718 startups globally.
Tech companies are facing multiple issues like rising inflation, recession fear, Russia-Ukraine war.
The situation is set to get worse with recession looming and funding drying up.
(With IANS inputs)