The food delivery giant, Zomato, is in the news again for all the wrong reasons. The company has asked employees across various departments to leave, which has led to layoffs of approximately 3% of its workforce. Departments like technology, product, and marketing have been impacted the most by this latest round of layoffs. The company is calling it a “regular performance-based churn”. This is not the first time Zomato has faced layoffs, in May 2020, it had to let go of 13% of its employees due to the downturn in business post the coronavirus pandemic. In this blog, we’ll be exploring the latest Zomato layoffs and the impact it has on the company and its employees. The main keyword for this article is ‘Zomato layoffs’.
Zomato Layoffs: Reasons behind it
The recent layoffs at Zomato have once again brought the company into the spotlight. The food delivery giant is said to have let go of around 3% of its workforce as part of a “regular performance-based churn.” Departments such as technology, product, and marketing have been impacted the most by these layoffs.
However, this is not the first time Zomato has undergone layoffs. In May 2020, the company had to let go of around 13% of its workforce due to the impact of the coronavirus pandemic on its business. Despite the current layoffs, Zomato is still one of the leading players in the food delivery industry, with nearly 3,800 employees.
The recent layoffs at Zomato have raised questions about the company’s future and its commitment to its employees. It is important to note that the food delivery industry has been heavily impacted by the pandemic, with many companies struggling to maintain profitability. Despite this, Zomato has managed to stay afloat and even report a narrow second-quarter loss as the volumes and value of its online orders rose.
While the Zomato layoffs are unfortunate for those affected, the company claims that it is a regular performance-based churn and not a sign of larger financial troubles. Nevertheless, it is important for the company to communicate clearly and transparently with its employees to ensure that they understand the reasons behind the layoffs and what the future holds for the company.
Departure of Zomato Co-Founder
Zomato, the popular food delivery platform, has recently seen the departure of Mohit Gupta, one of the company’s co-founders. Gupta had a 4.5-year stint at the company before resigning. His departure follows the exits of other key executives, including Rahul Ganjoo and Siddharth Jhawar.
Zomato founder and CEO, Deepinder Goyal, stated that “Mohit has been a key part of the founding team and has contributed significantly to the growth of the company. We wish him all the best for his future endeavors.”
Despite these departures, Zomato continues to grow and expand, as evidenced by their recent layoffs. In the wake of a “regular performance-based churn,” the company has impacted departments including technology, product, and marketing.
As one of the co-founders of Zomato, Gupta played a crucial role in building the company from the ground up and shaping its vision. During his time at Zomato, he helped the company expand globally and diversify into new areas like food delivery and online ordering.
Despite his departure, Zomato continues to be a major player in the food tech industry, and its recent layoffs are part of the company’s ongoing efforts to remain competitive. Nevertheless, Gupta’s departure is a significant loss for the company, and will likely raise questions about the future direction of Zomato.
Zomato’s Performance amid layoffs
In this section, we will delve into Zomato’s recent financial performance and the impact of the ongoing layoffs on the company. Despite reporting a narrow loss in the second quarter, Zomato has shown significant growth in online orders, a testament to the company’s resilience in a competitive market. However, the company’s employee count has been affected by the layoffs, with a significant number of employees losing their jobs in May 2020 due to the impact of the coronavirus pandemic.
This was not the only challenge faced by Zomato, as the company has also seen the departure of key executives, including the deputy CFO and the VP for global growth. These departures, coupled with the ongoing Zomato layoffs, have raised concerns about the company’s future. However, despite these challenges, Zomato remains a leader in the online food delivery space and continues to innovate and expand its offerings.
However, despite the challenges posed by the pandemic, Zomato remains one of the leading food delivery companies in India and is well-positioned for continued growth in the future. The company currently employs thousands of individuals and has a significant presence in cities across the country. Zomato continues to innovate and invest in new initiatives aimed at improving its offerings and expanding its reach. With its strong focus on delivering great customer experiences and its commitment to excellence, Zomato is poised for continued success.
Final Verdict
In conclusion, Zomato has been in the news lately for its layoffs and the departure of key executives, including co-founder Mohit Gupta. The layoffs were said to be part of a “regular performance-based churn” and impacted departments such as technology, product, and marketing. Despite this, the company has been making progress in its financial performance, reporting a narrow loss in the second quarter and growth in online orders. Zomato’s current employee count, however, is lower than what it was in May 2020 when the company underwent its first round of layoffs. The departure of key executives and recent financial performance are both important factors to consider for anyone following the development of the company. As always, it remains to be seen what the future holds for Zomato.
