Zomato Has Fired 114 Employees To Cut Costs: 3% Work Force Asked To Resign
Zomato on Saturday confirmed that it’s going to fire under 3 per cent of its staff.
Business as usual
It said the layoffs are based on regular performance.
“There has been a regular performance based churn of under 3 per cent of our workforce, there’s nothing more to it,” said a Zomato spokesperson.
Zomato already laid off around 3,800 employees before this churn.
It last laid off 520 employees, or 13 per cent of its staff, in May 2020 due to a business downturn caused by the pandemic.
Recent top level exits
The latest round comes on the back of three top level exits from the company in the last few weeks.
Co- founder Mohit Gupta quit the organisation on Friday, following the exits of Rahul Ganjoo, who was new initiatives head, and Siddharth Jhawar, the former head of Intercity Legends service, earlier this month.
Gupta left after serving a four-and-a-half-year stint, having joined the company in 2018.
He was leading the food delivery unit and was then elevated as co-founder in 2020.
“MG (Mohit Gupta) – you have been a brother, and a friend to me over the last few years.
You have done a tremendous job here, brought us back from the brink of extinction, scaled the business to new heights, got us to profitability, and above all, coached me over the years to become capable of running such a large and complex business,”
Zomato founder and chief executive Deepinder Goyal said in a heartfelt message, according to a regulatory filing.
Losses cut, revenue up
Net loss for the September quarter narrowed to Rs 250.8 crore compared to Rs 434.9 in the corresponding quarter last fiscal.
Meanwhile, revenue from operations rose by 62.20 per cent to Rs 1,661.3 crore.
The September quarter sales of the company’s food delivery business have grown only 22 per cent to Rs 6,631 crore from Rs 5,410 crore in corresponding quarter last fiscal.
On Friday, shares of Zomato settled at Rs 67.15 apiece on the BSE, down 0.89 percent.