The Dubai-based mass transit ridesharing company, Swvl Holdings Corp. (NASDAQ: SWVL) is well past its glorious past and is presently fighting for its survival. In order to protect itself from the financial challenges of the current bear market, it has continued to push on with trimming its headcount, in order to sustain operations into the short term.
SWVL Embarks On Second Round of Layoffs
Swvl Holdings Corp. has been pushing on, toward its second round of mass lay-offs, this time reducing its total organizational count to a mere 450 individuals. Barely six months ago, the company engaged in what it called, a ‘portfolio optimization program’, where up to 32% of its total workforce downsizing notices. During that time, it had also completely shut down all operations it ran in Pakistan, due to the worsening economic turmoil. This time around, its employee strength has been further trimmed by a whopping 50%.
The Future of Swvl Under Question
Swvl has been facing the worse financial year in its history, which is why it has had to take drastic downsizing measures during 2022. Its minimum bid price deficiency notice further confirms this idea, with the forward-looking prospects looking extremely bleak. The macroeconomic pressures of the year have made it especially difficult for startups such as Swvl to procure the relevant finances to sustain operations. With its headcount brought to severe lows, the company continues to struggle to survive until macroeconomic conditions see an improvement. With fewer salaries to pay out and operations at a standstill, Swvl can further extend its life by pushing on, until it manages to restructure its business and approach the financial markets to meet its capital needs.
Swvl continues to bear the brunt of the macroeconomic pressures of 2022 and has further reduced its headcount to a mere 450 employees. Only time will tell as to whether or not it would be able to survive into 2023 and beyond.