India: Zomato confirms country-wide layoffs, will affect at least 3 per cent of staff

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On Saturday, amid reports and speculation of possible layoffs, the food aggregator Zomato also confirmed that it will lay off just under 3 per cent of its workforce across the country based on regular performance. This comes amid what many have called the “lay off season” after major tech giants have fired employees affecting thousands across the world. 

“There has been a regular performance based churn of under 3 per cent of our workforce, there’s nothing more to it,” said the Zomato spokesperson. Notably, these layoffs were announced following the exit of the company’s three top-level executives, including co-founder Mohit Gupta on Friday. 

Earlier this month, the company’s new initiatives head, Rahul Ganjoo, and former head of Intercity Legends service, Siddharth Jhawar also quit. The food delivery platform currently employs at least 3,800 people. It had fired nearly 520 employees (13 per cent of the workforce) back in 2020 following a slump in business during the Covid-19 pandemic. 

At least 100 employees have already been impacted across functions like the product, technology, catalogue and marketing, said MoneyControl citing people familiar with the matter. “These roles had become redundant as these employees who were mostly from mid-to-senior roles were working when the product was being revamped. Not that the product work is over, they have been let go,” said the source. 

According to the report, the employees will be fired as soon as this week as the company is looking to cut costs and become profitable amid an increasingly challenging macro environment. Zomato had sustained a net loss of Rs 250.8 crores ($2.5 billion) in the last quarter, in September when compared to the previous fiscal year’s loss of Rs. 434.9 crores ($4.3 billion) in the same quarter. 

(With inputs from agencies) 

 

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