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Layoffs News: Zomato, the large online food delivery service, has let go of up to 600 customer service representatives within a year of hiring them, according to a MoneyControl report. The layoffs come as the company struggles with declining sales at quick-commerce subsidiary Blinkit and slowing growth in its core food delivery business.

Zomato is using artificial intelligence (AI) more and more to automate customer service tasks to reduce costs and improve efficiency. The company’s decision to lay off employees is consistent with its overall plan to maximize productivity in a difficult market.

Impact on workers

Customer service representatives hired through the Zomato Associate Accelerator Program (JAAP), which onboarded about 1,500 workers a year ago, were affected by the layoffs. The report quoted sources as saying that the dismissed employees were dismissed without a notice period but were compensated with one month’s salary. The dismissal was reportedly for several reasons, including poor performance and tardiness.

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Zomato has yet to issue an official statement regarding the layoff. LiveMint inquiries to the business have not yet received a response. It will be included as soon as Zomato responds.

Zomato Share Price Today

Despite the news, Zomato stock remains resilient, rising 0.84% to trade at R203.20 on Tuesday from R201.50 at the previous market close. The layoffs highlight the challenges Zomato faces as it navigates an evolving business environment and balances workforce management with technological advances.

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