Zomato lays off 500 employees from customer service roles

Meals supply agency Zomato has laid off round 500 junior-level workers from its affiliate programme launched final 12 months, folks within the know mentioned.

Below its Zomato Affiliate Accelerator Programme (ZAAP), the Gurgaon-based agency employed round 1,500 folks final 12 months for customer support roles with a plan to progress these workers into varied different departments together with operations, advertising, gross sales and provide chain.

It has now determined to retain round 1,000 of these onboarded below the ZAAP whereas letting the remaining go, citing non-performance points, an individual mentioned.

“These workers had been let go due to points resembling non-performance, non punctuality… they’ve been given two months value of pay as compensation,” one of many individuals cited above mentioned. A few of the laid off workers posted on social networking websites, saying their jobs had been terminated with none discover.

Zomato didn’t touch upon the event.

That is thus far the largest job minimize improvement at an Indian new-age firm in 2025, and is preceded by lay offs at Zypp Electrical, Sharechat and Pocket FM.

Whereas Zypp Electrical laid off around 10% of its workforce sacking 110-120 folks in March, Pocket FM and Sharechat have handed pink slips to 75 and 40 workers, respectively, in January.The event of Zomato’s lay offs was first reported by information publication Outlook Enterprise.

Zomato, which not too long ago renamed its parent entity to Eternal, witnessed a success to its profitability amidst rising competitors and growing money burn within the fast commerce house. For the quarter-ended December 2024, the corporate reported a steep 57% year-on-year (YoY) fall in net profit at Rs 59 crore.

Notably, whereas fast commerce continues to develop quickly, Zomato’s largest income generator and revenue maker section of meals supply has witnessed a slowdown in progress. In an interview with ET, Zomato CEO Deepinder Goyal had mentioned that the corporate could be introducing measures to handle the systemic points with meals supply.

Throughout the quarter, Zomato’s worker profit prices surged 63% year-on-year to Rs 689 crore. It posted income from operations of Rs 5,405 crore within the three-month interval.

As per the corporate’s annual report for fiscal 2024, it had 8,244 workers on its roll as of March 31, 2024, in comparison with 6,173 as on the identical interval a 12 months earlier than.

On Tuesday, Zomato’s inventory ended 0.3% up at Rs 202.05 on the BSE.