Travel Tech Company Swvl Plans to Cut 32% of Staff

Dubai-based mass transit solutions platform Swvl said it will cut its workforce by 32% in an effort to get on the path to profitability.

“Such reductions will focus on roles which have been automated by investments in the Company’s engineering and product and support functions,” the firm said in a news release Tuesday (May 31). “Swvl plans to provide monetary, non-monetary, and job placement support to help with the transition of certain of its employees to new roles.”

Read more: Swvl Acquires Turkish Mass Transit Provider Volt Lines

The firm’s LinkedIn page listed 1,336 employees as of Tuesday (May 31) morning, meaning the layoffs would affect 427 workers.

Swvl announced the job cuts along with a “portfolio optimization program to enhance efficiency and reduce central costs to accelerate its path to profitability to turn cash flow positive in 2023.”

The company said both sides of its business — Transport as a Service (TaaS) and Software as a Service (SaaS) — are growing rapidly, with more than 500 accounts on four continents taking in upwards of $5 million in revenue each month.

Swvl said its portfolio optimization program includes growing its business in several countries and regions, including Germany, Spain, Italy, Switzerland, Turkey, Japan, Kenya, Pakistan and the Middle East.

It will also focus on its B2C business in Pakistan and Egypt, which are its “highest B2C revenue contribution and profitability markets,” while also investing in its proprietary technology stack.

In April, Swvl announced it was acquiring smart bus platform Zeelo, a move designed to help the company’s early purchases of Viapool, door2door and Shotl. The company said the deal also sets it up to “rapidly land and expand” its business operations in three strategic markets — the U.K., South Africa and the U.S.

Learn more: Swvl Acquires Zeelo to Expand Mass-Transit Platform to US, S. Africa

Also in April, Swvl acquired B2B and TaaS mobility platform Volt Lines. Based in Turkey, Volt gives corporate clients an alternative to public transportation and ride-hailing using smartly routed shared buses through a monthly subscription.

As part of the deal, Volt will build a research and development center to support Swvl’s global hubs in Pakistan, German, Egypt and Spain. The company has pledged to run its entire network on electric, renewable energy-powered buses with zero emissions by 2030.