After a series of layoffs this year, Google-backed Dunzo, the quick-commerce player, has now deferred the salaries of its employees for the month of June. As per the reports by Money Control, this move will affect the most to the company’s top management, as shared by the people aware of the developments.
The decision was primarily taken because the company was facing issues managing its cashflows, despite raising $75 million in April this year. In the same month, the startup had let go off 300 employees in its second round of layoffs after it had laid off around 80 employees in January 2023.
Dunzo has over 1,000 employees in total and the latest decision to defer the salaries of 500 employees hints that there could be another round of layoff coming up. However, the startup has assured its staff that it will be paying them salaries later this month.
This is not the first time that the Bengaluru-based company is working towards cutting their cost. Over the past few months, the company has been increasing its focus on sourcing products through a marketplace model, rather than storing it in-house, contrary to what Swiggy Instamart and Zepto do.