Zomato Announces 250 Job Cuts Amid Latest Workforce Restructuring
Zomato has laid off up to 250 people in its current round of workforce reorganisation, including close to 240 employees impacted by the shutdown of its Hyderabad Customer Delight operations, reports said. The corporation is centralising remaining in-house support functions in Gurgaon.
Reportedly, 250 workers have lost their jobs at food delivery giant Zomato as part of the company's most recent round of labour cuts. Layoffs are the result of an analysis of the business's operational model for client satisfaction and organisational needs. Zomato has chosen to end its Customer Delight operations in Hyderabad as a component of the reorganisation.
The company has also moved all of its remaining in-house functions to a single Gurgaon site. About 240 employees in Hyderabad will be impacted by the changes. The organisation asserted that the decision was precipitated by modifications to its customer support model, rather than employee performance. The company announced its decision to restructure its operations and reduce team size.
Offerings of Zomoto to Exiting Employees
Workers who are impacted will get their August pay cheques plus four months of severance compensation, which includes contractual notice pay and an ex gratia payment. Additionally, the company's medical insurance and counselling services will be available until March 31, 2027. Consequently, further aid will be given to workers who are impacted by the reorganisation.
To further facilitate the changeover, workers will be permitted to keep and use their company-issued laptops and headphones for personal purposes. Zomato will also offer specialised outplacement services to help impacted workers locate new employment. There have been major shifts in the last six months within Zomato's customer support operations, with specialised external partners now taking on a bigger portion of the task. To better collaborate with the company's product, technology, analytics, and business divisions, the remaining in-house activities will be merged into an integrated team in Gurgaon.
Flipkart Set to Challenge Swiggy and Zomato
As competition heats up in India's fast-growing online food delivery market, Walmart-owned Flipkart will join the fray in the coming weeks. With this move, it will join forces with Zomato and Swiggy to challenge the status quo.
In an interview with a media house, Flipkart Group CEO Kalyan Krishnamurthy announced that the firm will soon debut its meal delivery service. Flipkart will launch food delivery first, as it does with all of its products, to gauge customer interest, gather feedback, and refine the offering until it finds success. Following that, the company begins to scale it.
Following the model of Flipkart Minutes, the company's rapid commerce service, the launch will start small before expanding. In addition to being on Flipkart, Krishnamurthy claimed that it will be a hybrid app. Nevertheless, he chose not to divulge the branding or the city of debut. Flipkart is about to launch its food delivery services as a part of its integration with the Open Network for Digital Commerce (ONDC), which is supported by the government. Flipkart joins a crowded Indian meal delivery sector where other companies are testing various strategies.
