Swvl, a global provider of transformative tech-enabled mass transit solutions, has cut a massive chunk of its global workforce including Pakistan.
People who were recently let go by Swvl told Bloomberg Asharq that the company has significantly reduced its headcount for the second time since May 2022 in a desperate attempt to revive profitability and achieve cash flow positive status.
Swvl has laid off a third of its global workforce this year due to difficult economic conditions and has now been forced to make additional cuts in order to reduce further losses. The company has yet to issue an official statement in this regard.
According to people familiar with the situation, the scale of the cuts could be greater as compared to May.
“It is much worse this time around … the product team is all gone and around 85% of the engineering team has been let go. They’re keeping the teams in Europe,” a current employee told another Enterprise. Quoting the employees, the publication said that teams in the UAE and Pakistan were also laid off.
It bears mentioning that 2022 was a tough year for Swvl. The company had been rapidly expanding, having made its Nasdaq debut in April. However, all of that growth appeared to have cost the company far more than it could afford. Despite solid revenue growth, its losses grew rapidly, and its share price continued to fall.
Swvl determined that its cash deficit was caused by rising expenses, so it started laying off employees and reducing executive pay. It appears that the company’s first round in May did not meet desired objectives, resulting in this new round of layoffs.
The company went public on the NASDAQ in March this year, however, it has seen its share price plunge nearly 95 percent over the last six months, with its valuation plunging from $1.5 billion to $53 million as of November. The company has until May 1, 2023, to raise its share price above $1.00 or risk delisting.