There has been a layoff of employees in Zomato. The company has fired more than 600 of its customer support employees within a year of hiring them. Most of these were hired by the company within the last one year. Zomato has taken this step at a time when its food delivery business is witnessing a decline in growth.
Zomato Layoffs: Food and grocery delivery company Zomato has laid off employees. The company has fired more than 600 of its customer support employees within a year of hiring them. Most of these were hired by the company within the last one year. Zomato has taken this step at a time when its food delivery business is seeing a decline in growth. On the other hand, its quick commerce company, Blinkit, is also facing increasing losses.
On the other hand, Zomato is focusing on automating customer support services to cut its costs and is increasingly using artificial intelligence (AI) for this.
Zomato did not respond to questions sent by Moneycontrol on March 26 in this matter.
Employees were recruited under ZAAP
Zomato hired more than 1,500 employees a year ago for customer support roles under its Zomato Associate Accelerator Program (ZAAP). Under this program, employees were given the opportunity to get promoted in sales, operations, program management, supply chain and category teams in a year.
However, the company did not renew the contracts of most of these contractual workers when they expired, causing hundreds of employees to lose their jobs.
Terminated by giving only one month’s salary
Moneycontrol spoke to some current and former employees, who say that the employees affected by the layoffs were terminated without any prior notice and were given only one month’s salary as compensation.
Shares fell 27 percent this year
Around 2.12 pm, Zomato shares were trading 1.06 percent lower at Rs 199.57. The company’s shares have fallen by about 27 percent so far this year.
