Hyderabad, August 31: Zomato has reportedly laid off around 250 employees in its latest workforce restructuring exercise.
The job cuts follow a review of the company’s customer delight operating model and organisational needs, according to media reports. The restructuring includes changes to its customer support operations.
Zomato has decided to discontinue its Customer Delight operations in Hyderabad. The company will instead consolidate its remaining in house operations at a single location in Gurgaon.
The move affects around 240 employees in Hyderabad, the report said. However, the company said the decision relates to changes in its customer support model and not employee performance.
“We have decided to reorganise our operations and rationalise the size of the team,” it said.
Zomato’s customer support operations have changed significantly over the past six months. Meanwhile, a larger share of the workload now goes to specialised external partners.
The company will retain some in house operations. These teams will work as an integrated unit in Gurgaon. They will also work more closely with product, technology, analytics and business functions.
According to the report, affected employees will receive their August salary. They will also receive four months of severance pay.
The severance package will include contractual notice pay and a one time ex gratia payment. In addition, Zomato will extend medical insurance and counselling support until March 31, 2027.
The company has also announced measures to support employees during the transition. Affected staff can retain their company issued laptops and earphones for personal use.
Zomato will also provide dedicated outplacement assistance. This support will help affected employees look for suitable job opportunities.
The latest Zomato layoffs come as the company reshapes its operating model. The company is relying more on external partners for customer support.
At the same time, Zomato is keeping a smaller in house team for its remaining functions. The restructuring will therefore bring those operations together in Gurgaon.
Meanwhile, the food delivery company announced another policy change earlier in the day. Zomato said it has adopted a zero tolerance policy on analogue dairy dishes sold by restaurants on its platform.
The company said it will immediately delist dishes that restaurant partners have declared as containing analogue dairy. The move follows action by food regulator FSSAI against several restaurants.
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