Indian food delivery giant, Swiggy, announced that it will lay off 380 jobs and shut down its meat marketplace as the company navigates the market downturn.

In an email to employees, Swiggy CEO Sriharsha Majety stated that the company had advanced its plans for profitability and needs to make difficult decisions to conserve cash.

The Bengaluru-based startup, valued at $10.7 billion in January 2020, employs around 6,000 individuals.

Majety acknowledged that the company, like others in the global food delivery category, had over projected growth. He stated, โ€œThis meant that we needed to revisit our overall indirect costs to hit our profitability goals. While weโ€™d already initiated actions on other indirect costs like infrastructure, office/facilities, etc, we needed to right-size our overall personnel costs also inline with the projections for the future. Our over hiring is a case of poor judgement, and I shouldโ€™ve done better here.โ€

The impacted employees will receive a severance of three to six months and additional days based on each year of service at the startup. Swiggy will also accelerate their vesting cliff and is providing medical insurance for them and their dependents until May this year.