Zomato fires nearly 10% of its workforce citing automation and service improvements

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Zomato, the online food delivery, and restaurant discovery platform has laid off 541 people -10% of the company’s strength — across its customer, merchant, and delivery partner support teams. The reason behind the move is an improved Zomato platform with Artificial Intelligence (AI)-driven bots and automation in resolving customer queries.

This is the second round of layoffs in a month at Zomato after 60 people were fired last month, August 2019.

Zomato on Saturday said these jobs would be automated and those laid off would get severance pay of two-four months. “Over the last few months, we have seen our technology products and platforms evolve and improve significantly. We have dramatically improved the speed of service resolution, such that now only 7.5% of our orders need support (down from 15% in March),”

The Company also added it would organize a job fair to help those laid off find employment and would extend insurance support to them until January 2020.

Zomato said we are currently hiring in our technology, product, and data sciences teams,”. The company claimed it has improved the speed of service resolution and now only 7.5% of its orders need support, down from 15% in March.

After the current round of layoffs,  Zomato’s total employee strength stands at 5,000. Apart from layoffs across customer, delivery and merchant support segments, Zomato also hired around 1,600 employees in 2019, including 400 off-roll people, said the company.

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