Food delivery platform Zomato has started laying off employees this week, as the company looks to cut costs and turn profitable, according to a Moneycontrol report quoting sources. It said that at least 100 employees have already been impacted across functions such as product, tech, catalogue and marketing. The report added that people in the supply chain have not been impacted. The company plans to lay off at least 4 per cent of its total workforce.
“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," the Moneycontrol report quoted one of the sources as saying.
Another source, according to the report, said Deepinder Goyal, founder and CEO of Zomato, held a town hall a few days ago where he hinted that there will be job cuts across functions that were not performing well. A few account managers dealing with cloud kitchens have already been replaced, sources said.
However, a Zomato spokesperson said, “There has been a regular performance-based churn of under 3 per cent of our workforce; there’s nothing more to it."
The move by Zomato comes days after Big Tech giants Meta, Twitter, Amazon also laid off employees across roles amid the ongoing difficult macroeconomic conditions.
On Friday, Zomato Co-founder Mohit Gupta also resigned from his post. Gupta, who had joined Zomato four-and-a-half year back, was elevated to co-founder in 2020 from the position of CEO of its food delivery business.
In a message sent to the Zomato which was shared on the BSE by the company, Gupta said he is “deciding to move on from Zomato to seek the other unknown adventures that life holds for me".
For the second quarter ended September 2022, Zomato’s consolidated net loss narrowed to Rs 250.8 crore, which was lower on a year-on-year basis. The company’s consolidated net loss stood at Rs 434.9 crore in the year-ago period.
Revenue from operations increased to Rs 1,661.3 crore during the July-September quarter, as against Rs 1,024.2 crore in the corresponding period a year ago. Its total expenses also rose to Rs 2,091.3 crore during the quarter under review, from Rs 1,601.5 crore a year ago.
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