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Zomato to fire nearly 3% employees in performance-based layoffs
Zomato reported Rs. 250.8cr of consolidated net loss in July-September quarter

Zomato to fire nearly 3% employees in performance-based layoffs

Nov 19, 2022
10:21 pm

What's the story

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.

Context

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.

Details

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.

Twitter Post

Parting tweet by Zomato's former food delivery unit CEO

Figures

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.

Information

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.