Updated: Sun, 20 Nov 2022 09:07 AM IST
Food delivery platform Zomato has started laying off employees this week across various functions including marketing, technology, product and other departments.
The move comes after big tech giants namely Meta, Amazon and Twitter laid off their employees at massive scale due to poor macroeconomic conditions.
According to a report by Moneycontrol, the food aggregator company is taking this decision to cut costs and turn profitable, in an increasingly challenging macro environment.
The report said by quoting sources that said at least 100 employees have already been impacted across functions such as tech, product, catalogue and marketing. However, people working in the supply chain have not been impacted. The report further said that the company plans to lay off at least 4 per cent of its total workforce.
The report published in the Moneycontrol quoted one of the sources as saying, “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.”
One of the 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."
Earlier on Friday, Zomato Co-founder Mohit Gupta also resigned from his post. After resigning from his post, Gupta sent a message to Zomato which was shared on the BSE by the company, he said, “deciding to move on from Zomato to seek the other unknown adventures that life holds for me".
Along with Mohit Gupta, senior management employees including company’s new initiatives head Rahul Ganjoo and intercity head Siddharth Jhewar had quit the food delivery company. Zomato is showing concerns of stability at the senior management level.
Zomato’s consolidated net loss narrowed to Rs 250.8 crore for the second quarter ended September 2022. The food aggregator company witnessed consolidated net loss stood at Rs 434.9 crore in the year-ago period.