The Layoff Decision at Swiggy

Research by: Geeta Mishra, Bindu Gupta, & Sandeep Puri

EXECUTIVE SUMMARY

This case discusses the post-layoff challenge faced by Swiggy, one of India’s major food aggregators, during the Covid-19 pandemic. The nationwide lockdown announced on March 25, 2020, to combat Covid-19 had left the online food ordering and delivery business in limbo, forcing many food aggregators, including Swiggy, to re-align their businesses. This case analyses Swiggy CEO Sriharsha Majety’s decision to layoff 1100 employees via a virtual town-hall announcement and a thorough email: the company’s business model, values, and people policy. The case provides valuable insights on managing the motivation and morale of the surviving employees amidst an economic or financial crisis. It also delves into Swiggy’s competitors and the challenges of India’s online food ordering and delivery industry. Instructors in employee motivation, people management, strategy, and leadership programmes may use this case to understand the customer- and employee-centricity, leadership challenges managers face when delivering bad news and strategies to keep the survivors’ morale high and performance effective, alternatives to layoffs, and workforce management during a realignment. The case is designed to enable students to think about issues concerning employee layoff. The case reviews the facts behind the organizational decisions amid crises. It provides the class and the instructor agenda to discuss the wide range of organizational concerns related to the layoff of employees. The instructors can use this case to discuss how management should have responded to a major external international crisis that caused many layoffs. The case also provides insights into how to design effective people-management systems to create value and the skill sets and leadership qualities required when implementing tough decisions effectively in times of crisis.

To cite this case:  Mishra, G., Gupta, B. & Puri, S. (2021). The layoff decision at Swiggy. Journal of International Business Education, 16, 219-236.

To access this case: https://www.neilsonjournals.com/JIBE/abstractjibe16swiggy.html

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The Journal of International Business Education enhances education in international business worldwide through the publication of high-quality refereed teaching materials, articles on key developments in teaching methods and technologies, and new institutional frameworks for international business education.

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