SWVL to layoff over 400 employees due to global economic downturn

Egyptian startup SWVL plans to terminate 32 percent of its workforce around 400 employees, due to economic downturn hits companies and tech startups worldwide, announced in a statement on Monday.

The private and public tech companies have faced defilation in the past few months with their valuations falling down. The effect of an economic downturn has also affected their finances leading them to economise through detaching the employees.

SWVL’s LinkedIn profile shows that the company has more than 1,330 employees. SWVL Dubai-headquartered plans to offer monetary, non-monetary and job placement support in the transition of certain of its employees to new roles, the statement added.

“The planned layoffs will impact teams responsible for functions that have been automated following investment in engineering, product and support functions,” SWVL said in a statement.

The layoffs decision comes a month after SWVL acquired U.K.-based mass transit group Zeelo for $100 million according to sources.

Over 15,000 tech workers have lost their jobs in the U.S., according to reports. Companies such as Klarna, Getir, Gorillas and Bolt (the payments company) have dismissed portions of their workforce while the likes of Snap, while Twitter and Instacart have decelerating the hiring entirely.

SWVL has made five acquisitions within the past year; include Germany’s door2door, Turkey’s Voltlines (for ~$40 million), Spain’s Shotl and Argentina’s Viapool.