Zomato to lay off 4% of its total workforce to reduce costs: Report

Zomato, the country's oldest online food aggregation and delivery platform, announced on Saturday that it will lay off at least 4% of its workforce across the organization in order to reduce costs and turn profitable, according to Moneycontrol.

As per the report, at least 100 employees have already been impacted across functions like the product, technology, catalogue and marketing.

The development comes after the co-founder Mohit Gupta resigned on Friday after a four-and-a-half-year stint at the company. This marked the third exit of a high-profile executive from the aggregator’s roster in the last few weeks.

This is not the first time that Zomato has carried out layoffs, the Gurugram-headquartered food aggregator had given pink slips to about 520 employees (13 percent) in May 2020 as a result of the extended Covid pandemic-induced lockdown. Earlier, in 2015, some 300 employees were told to go.

Zomato's net loss narrowed to Rs 251 crore for the September quarter, compared to Rs 429.6 crore in the corresponding period of the previous financial year.

The company also revealed this is the first quarter where they crossed the billion-dollar mark in annualised revenue. The revenue increased 62.2 percent to Rs 1,661 crore as against Rs 1,024 crore during the year-ago period.

With inputs from Agencies.

Published on: Saturday, November 19, 2022, 05:45 PM IST