Zomato, an online food delivery platform based in India, announces a reduction of up to 600 customer support jobs due to slow growth in core business and rising losses in its Blinkit subsidiary.
Zomato, the leading online food delivery platform in India, has announced the layoff of up to 600 customer support employees as part of cost-cutting measures triggered by a slowdown in growth within its core food delivery business. The decision comes within a year of hiring the affected employees and follows rising losses in Zomato’s quick commerce subsidiary, Blinkit.
The layoffs have stirred discussions on social media, particularly on Reddit, where former employees shared their experience of being let go with little to no warning. One user, who claimed to have been fired, expressed their frustration over the decision, citing an average tardiness of just 28 minutes over three months as the reason for the dismissal. The user added that there was no opportunity to improve or warning before the termination, despite having strong performance metrics.
According to sources, Zomato’s stock saw a slight increase of 0.84% to ₹203.20 following the announcement, signaling investor confidence despite the challenges the company faces.
The company has not yet disclosed further details on the layoffs, nor has it commented on the specific number of positions being cut. However, the decision highlights the ongoing challenges faced by food delivery platforms in India as competition intensifies and growth in the sector slows down.
The layoffs are part of Zomato’s ongoing efforts to streamline operations and reduce costs, especially as it grapples with rising losses in Blinkit, a recent acquisition that has not yet reached profitability. The company’s financial situation has become a key area of concern for investors, who are closely watching how Zomato plans to navigate these turbulent market conditions.
As of now, Zomato has not disclosed the exact impact on its customer support operations or what the next steps will be for the affected employees. However, the company’s commitment to managing costs effectively in the face of financial challenges will likely remain a key focus in the coming months.
The news of the layoffs highlights the ongoing struggles in the rapidly evolving food delivery and quick commerce industries in India, where companies like Zomato are facing pressure to balance expansion with profitability.
