Zomato lays off 541 staffers, says blame it on automation

Zomato lays off 541 employees across support teams, blames it on AI and automation

Online restaurant guide and food delivering platform Zomato on Saturday said that it has made a decision to lay off its 541 employees - 10 per cent of the company's strength - across customer, merchant and delivery partner support teams.

The company said that their business has continued to grow, and their order-related queries has gone down as their technology products have improved. NDTV delivers reliable information across all platforms: TV, Internet and Mobile. After several rounds of meetings with restaurant owners, Zomato had come up with a modified Gold programme in August.

The company, which is at the loggerheads with the National Restaurant Association of India (NRAI) over deep discounts in its fine-dining Gold programme, claimed it has improved the speed of service resolution and now only 7.5 per cent of its orders need support (down from 15 per cent in March).

The company also said that in the past few months, Zomato saw that their technology platforms and products evolved as well as improve significantly. Time to rethink value proposition? On behalf of the company, it has been said that we have fired 541 employees which are 10% of the total employees of Zomato.

Zomato has extended between two to four months' severance pay based on the employee's tenure, a company spokesperson told PTI. Family health insurance cover will remain till end of January 2020.

Zomato revealed that it had hired 1200 people across the functions and another more than 400 off rolls positions, and is now hiring in technology, data sciences, and product teams. We have also created jobs for hundreds of thousands of delivery partners. "We are now hiring in our technology, product and data sciences teams", the statement said.

Among the earliest unicorns and now valued at $4 billion, Zomato has been fighting a battle for supremacy with its biggest rival Swiggy. "Somewhere, we have made mistakes and things haven't gone as planned".

Zomato was founded in 2008 as a restaurant discovery and review platform.

The company is now at loggerheads with the National Restaurant Association of India (NRAI) over deep discounts.

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