Zomato cuts 13% of jobs, the rest faces 50%
Bangalore: The main online food delivery is reducing the size of its team by 13%, or 520 people, and implementing a storm of up to 50% for the rest of its staff due to the virus outbreak that affects its main business .
Fired persons will receive 50% of their salary for up to six months, or until they find a job, whichever is earlier. This also includes health insurance. For employees facing a pay cut, which is expected to last at least six months, the company will allocate twice the amount of the stock grants.
The Zomato co-founder and CEO told his staff that he expects the number of restaurants to decrease by 25-40% over 6-12 months. Therefore, we must ensure that we preserve as much cash as possible to weather the storm if the business environment worsens or remains the same for the rest of the year or more, he added.
Previously, Zomato had laid off about 540 of its customer service staff in September, citing the automation of large portions of support functions. After the last round, Zomato would employ less than 3,500 people.
To cut real estate costs, which is his highest recurring cost off the payroll, Goyal said Zomato has decided to make part-time or full-time work from home a permanent feature for staff, depending on the nature of their job. In April, TOI reported that Zomato's rival was cutting around 1,000 jobs in its private kitchen business as food delivery order volumes are still significantly lower than it was before the outbreak. Both platforms have begun to expand in grocery delivery since. Zomato grocery delivery is available in 185 cities and Goyal said the company sees long-term potential.