Zomato, led by Deepinder Goyal, has reportedly laid off 600 customer support associates, just a year after hiring them, according to a report by Moneycontrol.
The move comes as the company struggles with slower growth in food delivery and mounting losses at its quick-commerce arm, Blinkit. To streamline operations and reduce costs, Zomato is ramping up its reliance on AI-driven automation, replacing human agents with chatbots and automated responses for customer support.
What Happened to the Zomato Associate Accelerator Program?
In 2023, Zomato launched the Zomato Associate Accelerator Program (ZAAP), which brought in around 1,500 entry-level employees to handle customer service. The program promised opportunities for career progression into roles across sales, operations, supply chain, and category management.
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However, a majority of these associates were on fixed-term contracts, and instead of being absorbed into the company, their contracts were simply not renewed at the end of their tenure.
According to the report, affected employees were given just one month’s salary as severance and were allegedly let go without prior warning. Zomato cited performance-related issues, including low punctuality, as the reason for the dismissals.
Employees Speak Out: ‘We Were Blindsided’
Several former employees took to Reddit to share their frustration, describing the layoffs as abrupt and unfair.
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One ex-employee claimed he was fired despite meeting all performance targets. He said his only fault was an average tardiness of 28 minutes over three months, which he insists was never flagged as an issue before termination.
“There was no feedback, no warning—just an email saying I was out. Zomato didn’t care about our hard work, the results we delivered, or the effort we put in.”
Another dismissed worker alleged that over 500 employees were let go in a similar fashion, calling the experience “dehumanizing.”
“We were promised promotions, better salaries, and job security. We worked harder, put in extra hours, and believed in the company. And then, just like that, they fired us—no explanation, no accountability.”
Zomato’s Growing Dependence on AI
The layoffs align with Zomato’s broader shift toward automation. The company is increasingly relying on AI-powered systems to handle customer complaints, order tracking, and dispute resolutions, reducing the need for human intervention.
While automation may improve efficiency, critics argue that it comes at the cost of job security and fair employment practices.
What’s Next?
With Blinkit bleeding cash and food delivery demand stagnating, Zomato appears to be in cost-cutting mode. The question now is—who’s next?
