Eternal Limited, the parent firm of food delivery giant Zomato, has reportedly laid off 600 customer staff within a year of hiring them. Per some media reports, no notice was served to the axed employees before the layoff.
The layoffs at Zomato come amid slowing business in its quick commerce subsidiary, BlinkIt. Per Money Control, several employees stated that they were offered a month’s salary. The staff were, however, terminated without being served a notice period. The axed employees stated that the company cited poor performance and poor punctuality as some of the reasons for the layoff. Most of these employees were hired under Zomato’s ZAAP program in 2024. The termination was done in offices across Hyderabad and Gurugram.
Per some, the current restructuring of the organization is due to Zomato’s ongoing effort to automate customer care with the help of artificial intelligence or AI. The company has been investing heavily in AI off late, amid the ChatGPT and DeepSeek wave that has taken the tech industry by storm. In February, the firm launched Nugget, an AI-powered customer support tool that has been under development at Zomato for over three years. The tool is the first product from Zomato Labs.
#StartupsWithMC | Zomato lets go of 600 customer support employees amid food delivery slowdown, automation push@AryamanGupta_ reports ⤵️https://t.co/pcqHFZ9pit#Zomato #Startups
— Moneycontrol (@moneycontrolcom) April 1, 2025
Zomato laid off 600 employees due to a slowdown in food delivery and rising losses in Blinkit. The company is investing in AI, launching Nugget to handle 15 million interactions monthly.#Zomato #layoffs #BusinessNews https://t.co/x3VEovjyxd pic.twitter.com/FepBIBekI3
— News18 (@CNNnews18) April 1, 2025
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Cover: Patrick Gawande / Mashable India