Zomato Cuts 600 Jobs

Zomato Cuts 600 Jobs: Details of the Latest Layoff Fresh Report

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Zomato Cuts 600 Jobs: Zomato has made a big change at the beginning of the new financial year and has fired 600 employees of the company. Let us know the details..

Zomato Cuts 600 Jobs
Zomato Cuts 600 Jobs

Zomato Cuts 600 Jobs

Big news is coming out related to the food delivery platform Zomato. It is reported that Zomato Cuts 600 Jobs Zomato has made a big change at the beginning of the new financial year and has fired 600 employees of the company.  about 600 customer support executive employees within a year. These people were hired under the Zomato Associate Accelerator Program launched last year.

According to a report, Zomato has taken the step of cutting jobs at a time when the food delivery and quick commerce company is facing a slowdown in growth in its core food delivery business and increasing losses in its subsidiary Blinkit. However, Zomato has not yet issued any comment on this.

Zomato Cuts 600 Jobs: What are the Reasons?

This is also happening due to the increasing use of Artificial Intelligence (AI) in customer service work. This layoff has affected the employees of the company’s Gurugram and Hyderabad offices.

What did the Former Zomato Employee say?

A former employee said, “Getting fired was not expected. The way we (other employees who were also fired) were treated was unfair. I still don’t know clearly why I was fired, it’s difficult for me to understand,” the employee said on condition of anonymity.

Let us tell you that Zomato reportedly hired around 1,500 employees under its ZAAP program. These employees, initially hired for customer support roles, were expected to move to better roles. However, at the end of his tenure, the company did not renew many of these contracts.

Zomato is handling 1.5 crore customer queries every month. While launching Nugget, Zomato co-founder Deepinder Goyal said, ‘This platform will make customer support easy and cheap. It does not require coding or developer team, it will work only through automation.’

The Company is Focusing on Automation 

Zomato is now providing customer support to its other companies like Blinkit and Hyperpure through Nugget. After the introduction of Nugget, 80% of the queries are being resolved by AI. This has reduced the time taken to solve customer problems by 20%. Compliance has also improved by 20%.

Zomato Cuts 600 Jobs: What are the Employees’ Reactions?

There has been resentment among the employees after the company’s decision to lay off its customer support employees. Most of the employees were those who had hopes of promotion and contract renewal after their one-year tenure. But now all these employees have become unemployed.

Share Performance

Zomato’s stock closed at Rs 203.35 today on April 1, with a rise of 0.82%. The company’s stock has given a negative return of 8.46% in the last month. The stock has risen 10.22% in the last year. Zomato’s market capital is Rs 1.83 lakh crore.

Zomato has made a profit of Rs 59 crore in the third quarter of FY 2024-25. However, it has declined by 57% on an annual basis. In the same quarter a year ago, the company had a consolidated profit of Rs 138 crore.

Zomato’s operational revenue grew 64% year-on-year to Rs 5,405 crore in the October- December quarter. In the third quarter of FY 2023-24, Zomato generated a revenue of Rs 3,288 crore. The amount received from selling goods and services is called revenue.

The main reason for this could be the ever-increasing losses of Blinkit, which is unable to make profits despite increasing its presence in food and grocery delivery. The company will have to find new ways to handle this situation, so that its subsidiary Blinkit can also get a chance to improve.

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