In a major development in the food delivery and restaurant aggregator industry, Zomato, now rebranded as Eternal, has reportedly laid off between 500 and 600 employees from its customer support division. The layoffs have raised concerns among employees and industry experts, as sources indicate that affected workers were terminated without prior notice.
Understanding the Zomato Layoffs
According to industry insiders, the layoffs predominantly impacted employees working in Zomato’s customer support roles. These employees were primarily based out of Gurgaon and Hyderabad and were responsible for addressing customer grievances, resolving delivery issues, and ensuring smooth user experiences. The company has cited “non-performance” as the primary reason for the mass termination, but some employees have contested this claim, arguing that the layoffs were abrupt and unjustified.
Zomato Associate Accelerator Programme and Hiring Trends
In 2023, Zomato had aggressively expanded its workforce by hiring over 1,500 employees under the Zomato Associate Accelerator Programme. This program was designed to enhance customer support operations and improve response times for customers facing order-related issues. However, the recent layoffs suggest a strategic shift in the company’s operations, possibly towards automation and cost-cutting measures.
Why Did Zomato Lay Off Employees?
Several factors could have contributed to Zomato’s decision to downsize its workforce:
- Performance-Linked Terminations
- The company has officially stated that the layoffs were due to non-performance. However, sources suggest that performance metrics may have been evaluated strictly, leading to mass terminations.
- Shift Towards Automation & AI-Driven Support
- Many food delivery platforms, including Zomato, have been investing in AI-driven customer service solutions. Chatbots and automated response systems are reducing the need for human intervention in resolving standard queries, potentially making several support roles redundant.
- Cost-Cutting and Operational Efficiency
- Like many tech-driven companies, Zomato may be focusing on profitability over expansion. Cutting down on support staff could be a measure to optimize costs and improve overall financial health.
- Industry Slowdown and Market Trends
- The food delivery sector has been witnessing fluctuating demand post-pandemic. Rising operational costs and changing consumer behavior might have prompted Zomato to reconsider its workforce requirements.
Employee Backlash and Concerns
Some of the laid-off employees have taken to social media, alleging that they were not given any prior notice before being terminated. While some companies follow strict termination policies that include notice periods or severance packages, reports suggest that many affected employees were let go without any such benefits.
Legal experts suggest that if Zomato indeed terminated employees without notice, it could lead to potential legal battles or damage to the company’s reputation. Labor rights advocates are urging the company to provide clarity and compensation for those affected.
Zomato’s Response to the Layoffs
As of now, Zomato (Eternal) has declined to comment on the situation. The silence from the company has further fueled speculation about its future workforce strategy and overall business model.
What Lies Ahead for Zomato (Eternal)?
While the layoffs are unfortunate, they also highlight an evolving trend in the customer support sector. With AI and automation taking over traditional roles, businesses are likely to continue streamlining their workforce.
For former Zomato employees, the road ahead may involve upskilling in AI-driven support roles, exploring opportunities in other growing sectors, or seeking legal recourse if the layoffs violated labor laws.
Final Thoughts
The sudden termination of 500-600 employees at Zomato (Eternal) raises critical questions about job security, ethical business practices, and the future of human-driven customer support. While the company focuses on operational efficiency, the human cost of these layoffs cannot be ignored. Companies must strike a balance between automation and workforce sustainability to ensure fair treatment of employees in the evolving job market.