Egyptian ride-hailing firm, Swvl Holdings Corp., plans to lay off 400 people—about 32% of its workforce by 2023.
In a letter to employees, Swvl’s CEO Mostafa Kandil blamed the layoffs on a “global crisis with unforeseen consequences.”
“Over the past few weeks, Swvl has been hit like others across the globe with changes to its financial realities. While change is often unexpected, we believe that any attempt to resist it instead of adapting to it will prove futile,” Kandil said.
“We know we have to make tough decisions in order to prioritize profitability over growth to ensure that Swvl thrives once we are on the other side of this.”
The company also announced other measures including voluntary salary deductions from the top management team, reduction of current office spaces, freezing our current hiring program, freezing travel and accommodation expenses as well as tying expenditures to essential business requirements.
“Today, with the current global economic downturn, as much as we did everything we could to put people first, we now know that we are not able to keep everyone unimpacted. We know we have to make tough decisions in order to prioritize profitability over growth to ensure that Swvl thrives once we are on the other side of this,” the letter reads.
Suspends Intra-City rides in Kenya
In Kenya, the firm has suspended some of its operations.
“We are pausing our Swvl Daily intra-city rides in Nairobi, from Friday, 3rd June 2022 and Swvl Travel on Sunday 30th May 2022,” the transport firm said in a statement.
However, Swvl Business will still operate to cater to corporations, organizations, and private entities.
The company was operating in the country with three different solutions Swvl Daily, tailored for intra-city rides in Nairobi, Swvl Travel tailored for city-to-city rides, and Swvl Business tailored for business-to-business rides.
The ride-sharing firm made its debut on the Nasdaq Stock Market on April 1 after merging with blank-check company Queen’s Gambit Growth Capital.
Founded in 2017, SWVL offers intra and intercity travel options, along with B2B partnerships with public and private institutions aimed at transporting students and employees.
Swvl operates across 10 cities in Egypt, Kenya, Pakistan, the United Arab Emirates (UAE), Saudi Arabia, and Jordan.
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