Zomato lays off 600 customer support staff in cost cutting move

Zomato has laid off about 600 customer support staff on grounds of poor performance and tardiness. This move comes when the food ordering giant is accelerating the trend of automation and struggling with growth deceleration in its bread-and-butter business. The terminated workers were paid a month’s salary as settlement and let go without any notice.

The job cuts are due to Zomato’s cost-control and other efficiency programs. The organization has been making greater use of artificial intelligence (AI) to automate customer support tasks. Their AI-enabled customer support platform Nugget is currently handling over 15 million monthly support queries on behalf of Zomato, Blinkit and Hyperpure.



Zomato has recruited nearly 1,500 employees on its Zomato Associate Accelerator Program (ZAAP) last year, providing them with the opportunity to move into senior roles in a year. But most of these contractual employees were not given their contracts extended at the end of the terms.The job cuts are a fallout of Zomato’s inability to scale past its top eight cities, as the consumption slowdown continues.

The firm’s quick commerce arm, Blinkit, has also been experiencing mounting losses from rapid growth and increasing competition.Zomato’s finances also show its challenges.During the third quarter of FY25, the company reported a PAT (profit after taxes) decline of 57% year-on-year to Rs 59 crore.

Its operating revenue grew 64% year-on-year, to Rs 5,404 crore. However, the firm is facing increasing losses in its quick commerce arm and slowing growth in its core food delivery business.This isn’t Zomato’s first time conducting layoffs.

The firm had dismissed about 100 employees across multiple levels in December 2022. The company has also seen a slew of high-level exits over the last few years, which included departing co-founder and chief people officer Akriti Chopra last September.Also Read: Siddhivinayak Temple Earns Record Rs.

133 Cr In One Year, Plans New Girl Child Welfare Scheme The post Zomato lays off 600 customer support staff in cost cutting move appeared first on KalingaTV..