Egypt's Swvl is reducing its workforce by over 50% and cutting operating expenses
Egyptian transportation startup Swvl has announced plans to implement further measures, as part of its ongoing portfolio optimization programme to reduce costs, despite raising $20 million in a Post-IPO Equity round in April 2022.
Swvl provides transformative tech-enabled mass transit solutions globally, offering intercity, intracity, B2B and B2G transportation across about 135 cities in 20 countries across Latin America, Europe, Africa and Asia.
The programme, which started in May 2022, is aimed at helping the company to focus on its highest profitable operations, enhance efficiency and reduce central costs.
The Nasdaq-listed company has now gone ahead with the layoff of 50% of its 900-person workforce in its second round of layoffs this year. Swvl is also cutting operating expenses across central costs and all of its markets.
Swvl says it will now focus on its largest markets, primarily in Egypt and Mexico, which contribute to the majority of its revenues – and would consider strategic alternatives for its other operations which may include a potential sale, scale back or discontinuation.
The move is in response to the continuing uncertainty in the global economic environment and volatility in capital markets.
