Zomato fires up to 3% of workforce based on performance, At least 100 employees affectedtext_fields
New Delhi: Food delivery app Zomato has reduced its workforce by up to 3%. A company spokesperson clarified that it is part of the regular performance-based layoffs.
At least 100 employees across various departments such as product, tech, catalogue, and marketing are affected. People in the supply chain haven't been affected. The process has been going on for the past two weeks, said a source close to the matter to NDTV.
"These roles had become redundant as these employees who were mostly from mid-to-senior roles were working when the product was being revamped. Not that the product work is over, they have been let go," said a source to moneycontrol.
The news of the layoff comes a day after Mohit Gupta, the co-founder of Zomato announced his resignation. He will continue to remain as an investor. Senior executives Rahul Ganjoo (new initiatives head) and Siddharth Jhawar (former head of Intercity Legends service) also quit their positions earlier this month. This has raised concerns over stability at the senior management level.
Chief executive Deepinder Goyal said in a note: "MG (Mohit Gupta) - you have been a brother, and a friend to me over the last few years. You have done a tremendous job here, brought us back from the brink of extinction, scaled the business to new heights, got us to profitability, and above all, coached me over the years to become capable of running such a large and complex business."
On Thursday, Zomato reported a smaller second-quarter loss with a consolidated net loss of Rs 2.51 billion compared to the Rs 4.30 billion of last year. Revenue from operations rose to Rs 16.61 billion from Rs 10.24 billion. The platform is looking to cut costs and turn profitable in an increasingly challenging macro environment, reported moneycontrol.