Zomato Layoff: Firms Terminated Upto 600 Support Employees

Zomato, India's leading food delivery app, has recently laid off approximately 500-600 employees from its customer support team as the company grapples with a slowdown in growth.

According to reports, these job cuts come in the wake of a deceleration in Zomato's core food delivery business and increasing losses within its subsidiary, Blinkit. To mitigate costs, the company has turned to artificial intelligence (AI) to automate various customer support functions.

Interestingly, Zomato expanded its workforce significantly last year, hiring over 1,500 individuals through its Zomato Associate Accelerator Programme (ZAAP), primarily meant for customer support roles. The affected employees are mainly based in Gurgaon and Hyderabad, where they handle customer issues.

Some employees have claimed that the company initially promised opportunities for those in customer support to transition into other roles within the organization. In recent weeks, several Zomato employees took to Reddit, alleging that layoffs have been ongoing.

Despite these cuts, Zomato's stock experienced a modest uptick of 0.84% during Tuesday's trading session, closing at Rs 203.20 per share.