The job cuts, according to the report, is part of a broader effort to curb costs and create cash flow to address mounting liabilities, including overdue salaries to current and former employees and outstanding vendor payments.
Layoffs.fyi – the online tracker show that the job cuts were made on August 31, 2024.
Dunzo sends email to employees
As per the report, Dunzo has sent an email to its employees informing them about the recent downsizing. In the letter, Dunzo promises to pay pending salaries, severance, leave encashment, and other dues to affected staff as soon as it secures the necessary funds.
Dunzo, which started as a concierge service, has undergone multiple shifts and challenges. The company, once valued at $775 million, has been struggling to close a critical funding round. In May this year, Dunzo was reportedly close to securing $22-25 million through a mix of equity and debt from both new and existing investors.
In mid-July this year, the company informed its employees that it was in the final stages of closing a deal, expecting to settle dues within 10-15 days. However, the transaction failed to materialize with subsequent emails revealing persistent delays and challenges.
The company is now seeking to diversify its revenue sources beyond its primary merchant-focused operations.
