On 7th September 2019, India’s largest food-tech startup Zomato laid off 541 of its employees at their head office in Gurugram across its customer, merchant and delivery partner support teams. Before this, Zomato had fired 60 of its employees last month.
As per a statement issued by Zomato, “Over the last few months, we have seen our technology products and platforms evolve and improve significantly. While the business has continued to grow consistently, this has led to an overall reduction in direct order-related support queries.”
The company even claims that they have upgraded their speed of service resolution. As they say, now only 7.5 percent of their orders need support, which was earlier 15 percent in March 2019. They are further planning to regulate their customer support team by chatbots, just like their competitor- Swiggy.
Zomato even said that they would help their laid-off employees in getting placed with organizations in the same industry/business. To make this transition smoother for them, they have also extended between two and four months’ severance pay based on tenure and family health insurance cover till the end of January 2020.
Zomato has hired over 1,200 people across domains and another over 400 off-rolls positions and is currently hiring in technology, product and data science teams. The company is planning to introduce its Gold programme. Zomato’s food delivery service is now targeting its presence in 1,000 cities. It is aggressively launching across tier III and IV towns for broader reach.
Earlier, founder and CEO Deepinder Goyal said that the company could “make a profit any month” it wants, but currently it is focused on expanding the food delivery business. “We touch 25 million customers every week, generate half a million jobs directly as well as indirectly. So now we are all set for 10x growth in 5 years.”
However, Zomato is determined with the plans of making its Gold membership program with deep discounts available for delivery. Zomato claims to add 10,000 new jobs as a consequence of direct employment and contracts, in the ongoing month itself. The future conditions remain uncertain with two self-contradictory statements made by the CEO in a month.