Zomato begins lay-offs, plans to cut workforce by 4 per cent

Hyderabad: We have seen a trend of lay-offs across tech companies, but it does not stop here. The food delivery aggregator, Zomato, began laying off employees as it looks to cut costs and turns toward becoming profitable. At least a hundred employees have already been impacted by this lay-off across departments like tech, product, catalog, […]

Hyderabad: We have seen a trend of lay-offs across tech companies, but it does not stop here. The food delivery aggregator, Zomato, began laying off employees as it looks to cut costs and turns toward becoming profitable.

At least a hundred employees have already been impacted by this lay-off across departments like tech, product, catalog, and marketing while employees in the supply chain department have not been impacted as of now.

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The company plans to lay off at least 4 per cent of its total workforce. The food delivery company planned to start lay-offs after Zomato co-founder, Mohit Gupta, resigned from the company, Rahul Ganjoo, Zomato’s head of new initiatives, submitted his resignation, and Siddharth Jhawar, vice-president of global growth, quit earlier this month.

Apart from start-ups following the trend of lay-offs in India, with over 15,000 employees being impacted, big tech companies like Twitter, Meta, and Amazon also fired many employees globally to cut down on their expenses.

Zomato had over 3,000 employees before they decided to start lay-offs, and the food delivery service also laid off about 520 employees in May 2020 due to the downturn in business during the coronavirus pandemic.

Zomato’s net loss for the September quarter narrowed down to Rs 250.8 crore compared to Rs.434.9 in the last quarter. While the revenues increased from about 62 per cent to Rs 1,661.3 crore due to the increased amount of online food deliveries.