Swvl (NASDAQ:SWVL) layoffs are here again as the micro-mobility company seeks to reduce costs by cutting more than 50% of its workforce.
According to Swvl, these latest job cuts are part of its ongoing “portfolio optimization program.” That program also includes a focus on its largest markets, considering strategic alternatives in smaller markets and plans to reduce operating expenses and cut costs.
It’s worth pointing out that this isn’t the first round of Swvl layoffs in 2022. Earlier this year, the company cut over 400 jobs or about 32% of its staff. With the latest jobs cuts taken into account, Swvl now has around 450 people on its payroll.
What’s Behind the Swvl Layoffs?
Swvl says there are a few reasons it’s taking such drastic actions to reduce costs. That includes “the continuing uncertainty in the global economic environment and volatility in capital markets.” The company says this could negatively affect its ability to “generate sufficient cash from operating activities and external financings to fund working capital and service its commitments.”
Swvl is far from the only company conducting layoffs this year. Ongoing pressure from the global economy, as well as rising inflation, continues to weigh on companies. Tech, advertising and retailers have all been affected.
SWVL stock is up 1.2% as of Monday afternoon but still down nearly 96% since the start of the year.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.