Cairo-born mass transport Swvl has carried out a second wave of layoffs. Swvl already let go a third of its global workforce in May—two months after going public—and now it has made further cuts to stem losses in the persisting economic downturn.

Employees told Enterprise Press that this new layoff affected more employees than the previous one, particularly Swvl employees in the UAE and Pakistan. Some employees suggest that the staffing in Cairo has been decimated to about 10% of what it originally was. Some noted, however, that the Europe team was not affected as much as the others.

An expensive growth

Before now, Swvl was rapidly expanding—it made its Nasdaq debut in April. However, all that expansion seemed to be costing the company a lot more than it could afford. Its losses continued to grow rapidly, and its share price kept plummeting despite solid revenue growth. Swvl determined that its cash negative was rooted in its rising expenses, so it decided to lay off employees, reduce executive pay, and cut back routes. It appears that its first round of job cuts in May didn’t achieve its goals, hence this new wave of layoffs.

What is Swvl’s goal?

Swvl aims to have positive cash flow by the next year. Considering that its shares have fallen more than 95% since its debut in April, it is also aiming to maintain its position on Wall Street. Since the third week of September, the company has traded below the $1 minimum threshold set by the Nasdaq. Swvl has until May 1, 2023, to increase the price of its shares over $1.00 or risk delisting.