Zomato, led by CEO Deepinder Goyal, has recently laid off approximately 600 customer support associates just a year after hiring them. This decision comes amid challenges in the food delivery sector and increasing losses from its quick-commerce subsidiary, Blinkit.
Layoffs Amid Automation Shift
The layoffs are part of Zomato’s broader strategy to automate customer service operations using artificial intelligence (AI). The company has launched an AI-driven platform called Nugget, which is designed to handle up to 80% of customer queries autonomously. Nugget aims to streamline operations and reduce costs by managing over 15 million interactions monthly across Zomato’s platforms, including Blinkit and Hyperpure.
ZAAP Program Employees Affected
Many of the laid-off employees were part of Zomato’s Zomato Associate Accelerator Program (ZAAP), which hired around 1,500 individuals for entry-level customer support roles. The program promised career growth opportunities within a year. However, most of these workers were not offered contract renewals after their one-year tenure ended.
Affected employees reported being terminated without prior notice, receiving only one month’s salary as severance. Zomato cited performance issues, including punctuality, as reasons for the layoffs. Many former employees expressed frustration on platforms like Reddit, claiming they were dismissed abruptly without any opportunity for improvement.
Employee Reactions
The reactions from those affected have been overwhelmingly negative. One former employee described the termination as “ridiculous,” citing an average tardiness of just 28 minutes over three months as grounds for dismissal. Another employee lamented the lack of communication and support from the company, stating that they had consistently met performance metrics.
Industry Context
Zomato’s layoffs reflect a growing trend in the tech industry where companies are increasingly relying on AI to automate roles traditionally held by humans. This shift not only impacts job security but also raises questions about corporate responsibility and employee treatment in the face of technological advancements.