Zomato to fire nearly 3% employees in performance-based layoffs
Amid the layoff season across the globe, especially in the tech world, homegrown food aggregator and delivery platform Zomato has confirmed that it will lay off around 3% of its workforce across various departments, Livemint reported. However, a spokesperson told the publication these layoffs are part of the company's "regular performance-based churn" that will see the firing of less than 3% of employees.
Why does this story matter?
- The latest layoffs follow the exit of several key executives of Zomato recently.
- Within just a few weeks, Zomato saw three high-level departures, including that of its co-founder Mohit Gupta, who stepped down Friday after working with the company for 4.5 years. He was in charge of Zomato's food delivery unit.
- He was promoted from CEO of food delivery to co-founder in 2020.
Moving on to explore other undiscovered adventures: Zomato co-founder
In a note emailed to Zomato and uploaded by the firm on the Bombay Stock Exchange (BSE) website, Gupta stated that he is moving on from Zomato to explore other undiscovered adventures that life has in store for him. Along with Gupta, the firm's new initiatives head Rahul Ganjoo and Intercity Legends service chief Siddharth Jhawar quit earlier this month.
Parting tweet by Zomato's former food delivery unit CEO
As I wrap up my 5+ year stint at Zomato, my heart is full of pride and gratitude - for the work we did and the progress we made, for getting a once in a lifetime privilege to build Zomato and for finding a new family for life. It's been a such a fulfilling ride! So much♥️🙏— Rahul Ganjoo (@elegantlywasted) November 15, 2022
Company faced net loss of Rs. 250.8cr in September quarter
Meanwhile, earlier on November 10, Zomato reported the narrowing of its consolidated net loss to Rs. 250.8cr for the second quarter ending in September, as per HT. In comparison, the food delivery platform's consolidated net loss stood at Rs. 434.9cr in the same period last fiscal. Its operating revenue rose to Rs. 1,661.3cr during the July-September quarter from Rs. 1,024.2cr in the year-ago period.
Zomato employees faced worse layoff in 2020
During the COVID-19 pandemic, too, Zomato reduced its operations and laid off many staffers. It had terminated its local operations in Indonesia, firing all employees. COVID-19 has had a significant impact on the food and beverage industry. Zomato apparently experienced worse circumstances in May 2020 when it laid off 13% of its total staff and paid deducted salaries to those who remained, TOI reported.