Swvl Mass transit solutions provider will reduce its headcount by approximately 32% “400 employees” to cut central costs and enhance efficiency.
This decision means that over 400 people will lose their jobs as the Dubai-based company has more than 1,330 workers.
Swvl announced late Today,” Such reductions will focus on roles automated by investments in the company’s engineering and product and support functions.”
The startup said it plans to provide monetary, non-monetary, and job placement support to help transition certain of its employees to new roles.
This decision has been taken Coinciding with more than 15,000 workers who have lost jobs in the tech sector in the US this May, while the Indian startups have fired more than 7,000 employees to date as they navigate global macroeconomic factors.
Swvl has a bad record when it comes to people’s happiness. In 2019, the Egyptian social media community launched an anti-campaign against Swvl after a few Swvl employees accused their employer of terminating their contracts unjustly.
Many other companies such as Klarna, Getir, Gorillas, and Bolt have fired some of their workforces; since March 2020, when the Covid-19 pandemic started, 1.25 lakh employees have been laid off by around 718 startups globally.
Nowadays, Tech companies face multiple issues like rising inflation, recession fear, and the Russia-Ukraine war; it is expected that the situation will get worse with the recession looming and funding drying up.
It is worth mentioning that Swvl was founded in 2017 by Mostafa Kandil, Ahmed Sabbah, and Mahmoud Nouh. It operates in 115 cities in 18 countries across Latin America, Europe, Africa, and Asia.