Trouble persists at Dunzo, a retail company and quick-grocery delivery provider. Despite being backed by Google, the Bangalore-based company is currently unable to fulfill its obligation of paying employees’ salaries. Additionally, Dunzo has not yet cleared the outstanding dues from the previous month.
Dunzo recently informed its employees that the payment of salaries for June and July has been further delayed. Due to financial constraints, the homegrown quick-grocery provider will not be able to pay salaries until early September. This announcement comes after the salaries were already delayed beyond the original deadline of July 20.
Company’s Statement to Employees
“Regrettably, the balance payouts for the June salary, which were expected to be made this week, have been postponed. The pending salaries for June will now be paid on September 4, 2023. Furthermore, the salaries for July and August will also be paid on September 4,” informed Dunzo in an email to its employees.
“At this stage, we need to focus on streamlining our cash flow to build a more sustainable future for the business. We greatly appreciate your support during this process,” added the company in the email.
To improve its financial health, Dunzo has reportedly implemented a salary cap of Rs 75,000 per month for all employees, regardless of their previous pay packages. It has also delayed 50% of the salaries for senior employees.
According to reports, Dunzo plans to lay off more employees this month. The company has already laid off approximately 400 employees in two previous rounds. In April, following a $75 million funding round, Dunzo laid off around 30% of its workforce, consisting of nearly 300 employees. In January, the company also let go of 3% of its workforce as part of cost-cutting measures aimed at enhancing team efficiency and network design.
Also Read: Dunzo to lay off 30% of staff amidst a $75 million funding round
Also Read: Dunzo delivery boy recreates DDLJ scene on railway station, netizens say ‘Mera delivery wala aaega’ | Watch
(With IANS inputs)
Latest Business News
Denial of responsibility! SamacharCentrl is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.