‘Painful decision,’ says Zomato as it sacks 541 employees
New Delhi | Jagran News Desk: Online restaurant guide and food delivering platform Zomato on Saturday said that it has decided to lay off its 541 employees -- 10 per cent of the company’s strength -- across customer, merchant and delivery partner support teams.
Zomato has extended between two to four months' severance pay based on the employee's tenure, said a company spokesperson.
“Today, we let go of 541 people, around 10 per cent of Zomato's strength, across these support teams,” said a company spokesperson to news agency PTI.
The company in a statement said that the reason behind this move is an improved Zomato platform with Artificial Intelligence (AI)-driven bots and automation in resolving customer queries which has led to an overall reduction in direct order-related support queries.
“Over the last few months, we have seen our technology products and platforms evolve and improve significantly. While the business has continued to grow consistently, this has led to an overall reduction in direct order-related support queries,” according to a statement issued by Zomato.
However, the company further said that these factors have led to certain redundancies across their merchant and delivery partner support teams and the company has dramatically improved the speed of service resolution such that now only 7.5 per cent of its orders need support, down from 15 per cent in March.
“There is no one intervention or optimisation that has led us here, but a series of technological and process advances that on one-end spurred the growth of our food delivery business and subsequently the 5X growth of our delivery partner fleet over the last year have also led to fewer support queries and certain redundancies within our support functions,” the statement further read.
(With PTI inputs)
Posted By: Aalok Sensharma