Swvl CEO Mostafa Kandil announced today that Swvl will be cutting down workforce in certain markets in order to become cashflow profitable in 2023. The news comes a week after Airlift announced a similar strategy to layoff workers and close operations in various cities of Pakistan in order to reduce operating costs.
With soaring prices and the recession at full scale, there is no doubt that these announcements are just the beginning of what’s to come in the future as startups restructure their ambitious plans to a more sustainable roadmap to increase cashflows and become profitable.
Terminated employees are being provided the following as a severance package:
- Severance: All impacted employees to receive severance based on gross salary and complete cash payout
- Provident Fund, Gratuity & Leave encashment other legal payments
- All RSU to be considered vested
- Expense claims/OPD claims to be cleared
- All Final Settlements to be taxed as per local requirement
- Payout Transfer to be complete in the next 21 days
- Medical Insurance: to be extended for all entitled employees
- Stock Options: all unvested stocks for impacted employees to continue to vest as per schedule
- Alumni Directory: an alumni network directory to support our impacted workforce
- No interview policy for Rejoiners
- Laptops to be retained by employees subject to data security requirements
Read the blogpost here for more details