Zomato to lay off 4% of its total workforce to reduce costs: Report

Digital Desk: The oldest online food aggregation and delivery platform in the country, Zomato, announced on Saturday that it will remove at least 4% of its employees overall as part of its attempts to reduce costs and become profitable.

Zomato, which has about 3,800 workers as of right now, said that layoffs will be made based on regular performance."

There has been only a regular performance-based turnover of less than 3% of our workforce," a Zomato spokesperson said.

According to sources cited by MoneyControl, at least 100 employees have already been impacted across departments including product, technology, catalogue, and marketing.

The change occurs after co-founder Mohit Gupta left the company on Friday after working there for four and a half years. This was the third time recently that a well-known executive had left the aggregator's staff. Additionally, the meal delivery service said earlier this week that Rahul Ganjoo had left his position as Head of New Initiatives after five years.

Siddharth Jhawar, vice president of global growth at Zomato, made a similar announcement earlier in the month.

This is not the first time Zomato has made layoffs; in May 2020, as a result of the Covid pandemic-induced lockdown, the Gurugram-based food aggregator gave pink slips to roughly 520 employees (13%) in total. Earlier, in 2015, around 300 workers received termination notices.

Zomato's net loss decreased to Rs 251 crore for the September quarter from Rs 429.6 crore in the same quarter the previous year. The company also disclosed that this is the first quarter in which its annualised revenue has surpassed the billion-dollar mark. The revenue increased 62.2 percent to Rs 1,661 crore as against Rs 1,024 crore during the year-ago period.