- UAE-based mass mobility services provider, SWVL, has laid off over 50 per cent of its staff, in a recent round of layoffs conducted by the company.
- The company announced further cuts in its operating expenses including marketing and other third-party services. SWVL has also shut down its operations in Pakistan, its second biggest market according to a report from Pakistan Today.
- This came as part of the company's broader optimisation plan to reduce costs and sharpen focus on profitable markets including Egypt and Mexico.
- In late May, a little over a month after its listing on the US NASDAQ, SWVL laid off 32 per cent of its staff.
- The company is now trading at 0.40 per share, down from its initial public offering (IPO) stock price of $9.95 per share.
Swvl Holdings Corp (“Swvl” or the “Company”) (Nasdaq: SWVL), a global provider of transformative tech-enabled mass transit solutions, today reported that it is implementing further measures as part of its previously announced and ongoing portfolio optimization program to reduce costs.
These further measures will include the following:
- Focus on the largest markets which contribute the majority of Swvl’s revenues, primarily in Egypt and Mexico
- Evaluation of strategic alternatives for smaller countries of operations which can include potential sale, scale back or discontinuation of these operations
- Reduction in headcount by over 50%
- Reduction in operating expenses across central costs as well as all markets. These include aggressive cost cutting in discretionary spending such as marketing expenses and other third-party services.
Swvl is taking these measures amid the continuing uncertainty in the global economic environment and volatility in capital markets, which potentially impact Swvl’s ability to generate sufficient cash from operating activities and external financings to fund working capital and service its commitments.