Zomato has laid off more than 600 customer support employees within a year of hiring them. Most of these employees were recruited within the last 12 months.
This move comes as Zomato faces a decline in growth in its food delivery business, while its quick commerce division, Blinkit, continues to experience mounting losses.
Focus on Automation and AI:
To reduce costs, Zomato is shifting its focus towards automating customer support services.
The company is increasingly relying on Artificial Intelligence (AI) to handle customer service tasks.
ZAAP Program Employees Affected:
Over a year ago, Zomato hired more than 1,500 customer support staff through its Zomato Associate Accelerator Program (ZAAP).
This program provided employees with opportunities for promotions in various departments, including sales, operations, program management, supply chain, and category teams.
However, when the contracts of these workers expired, most were not renewed, leading to widespread layoffs.
Termination Details:
Some affected employees revealed that they were terminated without prior notice and received only one month’s salary as compensation.
Stock Performance:
Zomato’s stock has fallen by 27% this year, with shares trading down by 1.06% at Rs 199.57 around 2:12 PM.
Zomato has not responded to queries regarding the layoffs.
