As per reports, Food delivery giant Zomato has laid off around 500-600 customer support employees, citing non-performance as the primary reason. The decision has sparked controversy, as several impacted employees claim they were terminated without prior notice.
Zomato’s customer support team, primarily located in Hyderabad and Gurgaon, was hired as part of the Zomato Associate Accelerator Programme (ZAAP) to improve customer service operations. The business has since turned its attention to automation, using artificial intelligence (AI) to respond to consumer inquiries and lessen the need for human involvement.
Controversy Over Layoffs
Sources indicated that workers were promised chances to switch positions within the firm. Yet, numerous workers said they never received the promised internal transfers. Fed-up former workers complained on social media that some losses have continued for weeks.
Zomato refused to comment on the layoffs formally. The company has been facing financial stress recently, with its consolidated profit plummeting to Rs 59 crore in the December quarter from Rs 138 crore a year earlier. Considering this, the strategic shift of the company towards AI-based customer care appears to be in a bid to trim the costs of operations.
Industry-Wide Shift Towards AI
Zomato is not the only tech-driven company resorting to automation. Industry peers such as Paytm and Ola have also been cutting customer support jobs while deploying AI to manage customer interactions more efficiently.
As the quick commerce space becomes increasingly competitive, Zomato’s recent acquisition of Blinkit and its expansion beyond food delivery have also stretched the company’s financial resources. To incentivize its remaining employees, the firm recently approved a grant of 2,17,960 stock options to eligible staff.
While the future of customer support roles at Zomato remains uncertain, the company’s commitment to automation reflects a broader trend in the tech and service industries, where AI-driven solutions are gradually replacing traditional job functions.
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