Zomato has been establishing its dominance in the online food delivery sector. Amid this, the company has made a shocking decision regarding its employees. Zomato has laid off more than 600 employees within a year of hiring them, reported the news portal Moneycontrol, citing people aware of the development on Tuesday, April 1. Due to these sudden layoffs, hundreds of employees have been left jobless.
Sudden Layoffs Without Notice:
According to a report by Moneycontrol, Zomato had hired 1,500 customer care executives under the Zomato Associate Accelerator Program (ZAAP). Employees were hopeful of getting a promotion after completing a year in the company. However, the sudden announcement of job cuts has left many in distress. A large number of these employees did not have their contracts renewed and were terminated without any prior notice. One month's salary was given as compensation to the sacked customer service representatives. They added that among other reasons, the workers' poor performance and poor punctuality led to their termination. A current customer service representative informed the news portal, "The majority of employees hired under Zomato's ZAAP program last year have been let go over the last week or so without any clear explanation."
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They added that layoffs had occurred in Hyderabad and Gurugram as a result of current employees' growing concerns about their jobs.
Why Did Zomato Take This Step?
The company cited cost-cutting measures to recover losses as the reason for the layoffs. It stated that AI-powered customer service, poor employee performance, and indiscipline were the key factors behind the decision.