Zomato has begun laying off employees in order to cut costs and turn profitable as the macro environment becomes increasingly challenging, sources told Moneycontrol.com on Saturday.
According to the sources, nearly 100 employees have already been fired as the food delivery platform looks to let go of about four percent of its workforce. The staff impacted by the move include those in product, tech, catalogue, and marketing, though people in the supply chain haven't been affected.
“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,” a source was quoted as saying by Moneycontrol.
One of the sources said Zomato founder and CEO Deepinder Goyal had earlier held a town hall where he had intimated about job cuts across functions that were not performing well. A few account managers dealing with cloud kitchens have already been replaced, sources said.
A Zomato spokesperson told o Moneycontrol that there has been a regular performance-based churn of under 3 percent of the workforce.
Zomato is the latest among big names to join the list of companies going for massive job cuts. Since last month, Byju’s, Twitter, Amazon and Meta have gone for mass layoffs impacts impacting employees across functions and locations.
Specifically, most startups have either implemented a hiring freeze or have laid of staff since funding winter began amid recession concerns.
The layoffs at Zomato come soon after three top-level exits from the company in the last three weeks. Zomato's co- founder Mohit Gupta, new initiatives head Rahul Ganjoo and intercity head Siddharth Jhewar had quit, prompting concerns about stability at the senior management level.
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