Dunzo Postpones 50% of Salaries for Managers and Above, Amidst Strategic Transition
- ByStartupStory | July 11, 2023
Dunzo, a hyperlocal fast commerce startup backed by Google and Reliance Retail, has reportedly postponed 50% of salaries for managers and above. The decision comes after the company recently underwent a strategic transition and announced the closure of half of its nationwide network of dark stores.
According to a source, “All employees manager grade and above have only received 50% of the salary of June. Rest company says they will pay it later.” This move has raised concerns among employees as they await the remaining payment.
Dunzo had previously raised a significant $75 million in a fundraising round with notable investors including Reliance Retail and Google. However, despite the investment, the company decided to implement cost-cutting measures by laying off 30% of its workforce in April of this year.
Following the investment announcement, Dunzo management held a town hall meeting where they discussed a change in the business model. The closure of half of their nationwide network of dark stores was part of the strategic transition, aiming to streamline operations and optimize resources.
This is not the first time Dunzo has resorted to workforce reductions as a cost-cutting measure. In January, the company laid off 3% of its staff in an effort to improve its financial position.
Dunzo has faced financial challenges in recent years, with losses amounting to ₹464 crore in FY2022, double the losses recorded in the previous year. The company is actively seeking ways to improve its financial performance and establish a sustainable business model.
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