During an all-hands meeting on the evening of July 19, Dunzo's co-founder and CTO, Mukund Jha, informed employees that the quick-commerce player will be initiating another round of layoffs. The size of the layoff will be determined within this week.

This marks the company's third round of layoffs in the last seven months, reflecting its current struggles as it faces mounting challenges, particularly related to cashflow issues, reported Moneycontrol. 

According to senior employees' estimates, approximately 200 employees, which accounts for at least 20 percent of the company's workforce, are expected to be impacted. The company has already laid off 380 employees in two previous rounds of layoffs.

Despite claims by Jha that the company has a runway of approximately 18 months and holds around $40 million in its bank account, the new round of layoffs is still taking place. Unfortunately, debt obligations prevent the startup from accessing those funds.

“We are definitely considering layoffs and the size will be decided either tomorrow [July 20] or day after [July 21]. Within this week we will communicate to employees,” Jha said in the July 19 meeting.

Just hours before the all-hands meeting, the struggling startup sent an email to its employees regarding the delayed salaries. According to a Reuters report, quick-commerce player informed its employees on Wednesday that pending salaries from June would be delayed until September. The delay was revealed in an internal email.

Back in June, Dunzo deferred salaries for approximately 50 per cent of its workforce, comprising roughly 500 employees. The company assured that the dues would be cleared by July 20. Additionally, due to the cash crunch, employee salaries were capped at Rs 75,000, regardless of their actual salary amount. However, employees whose salaries fell below this threshold were to receive their full payment.

"We understand this is very difficult for you and we appreciate your patience. At this stage, we need to focus on streamlining our cash flow so we can build a more sustainable business for the future. We need your support as we work through this," the email sent to employees read.