Zomato Layoffs: Online food delivery platform Zomato cuts up to 600 customer support jobs within a year of taking them on board, reported the news portal Outlook Business, citing people aware of the development on Tuesday, April 1.
According to the report, Zomato‘s job cut move comes as the food delivery and quick commerce firm is facing a slowdown in growth in its core food delivery business and rising losses in its subsidiary Blinkit.
The company also leverages artificial intelligence (AI) to automate its artificial intelligence (AI) for customer support functions in order to reduce costs for the company.
LiveMint’s queries sent to Zomato remain unanswered so far. Any response from the company will be included later in the story.
According to a Moneycontrol report, the food delivery firm hired nearly 1,500 employees for its vacancies in the customer support roles under the Zomato Associate Accelerator Program (ZAAP) one year ago.
Employee Compensation
The customer support employees who were fired received one month’s salary as compensation and then were terminated without any notice period, reported the news portal, citing sources aware of the development.
They also said that the employees were fired based on poor performance and poor punctuality, among other things.
“A majority of employees hired under Zomato’s ZAAP program last year have been let go over the last week or so without any clear explanation,” a current customer support employee told the news portal.
They also mentioned that the layoffs have taken place across Gurugram and Hyderabad, as the fears rise amongst the existing employees over their existing jobs.
Zomato shares were trading 0.84 per cent higher at Rupee 203.20 ahead of the stock market close after Tuesday’s trading session, compared to Rupee 201.50 at the previous market close.