Swvl to Fire Over 400 Employees

Swvl, a provider of Mass Transit Solutions, has announced a 32% reduction in headcount in order to improve efficiency and cut central costs in order to turn cash flow positive in 2023, as the Global Economic Downturn affects companies and tech startups. The Dubai-based mobility startup employs over 1,330 people, and laying off 32% of its workforce means over 400 people will lose their jobs.

"Such reductions will focus on roles which have been automated by investments in the company's engineering and product and support functions," the startup said in a statement late on Monday. Swvl plans to provide monetary, non-monetary, and job placement assistance to assist with the transition of some of its employees to new roles.

The news comes as more than 15,000 workers were laid off in the  United States Tech Sector in May alone, while over 7,000 employees have been laid off by Indian startups to date as they navigate global macroeconomic factors. Companies like Klarna, Getir, Gorillas, and Bolt have laid off some of their employees.

Tech companies are dealing with a variety of issues, including rising inflation, recession fears, and the Russia-Ukraine conflict. With a recession looming and funding running out, the situation is only going to get worse.