More than 600 employees removed within 1 year!
There has been a layoff again in zomato, the online food and grocery delivery company. The company has fired more than 600 of its customer support executives within a year of hiring them. The company has taken this step at a time when its food delivery business is seeing growth. On the other hand, its subsidiary quick commerce company Blinkit is also facing continuous losses.
Staff fired without any notice
According to a Moneycontrol report, 1,500 customer care executives were recruited in the company under the zomato Associate Accelerator Program (ZAAP). These employees, who were waiting for promotion after completing their one year in the company, were in trouble when the company announced layoffs. Most of these are employees whose contracts were not renewed and were fired without any notice. Here, the company has cited poor performance, indiscipline, increasing use of AI in customer support and cost cutting as the reason for the layoffs.
AI is being used extensively
These days the company is emphasizing on automating its customer support service and for this Artificial Intelligence (AI) is being used rapidly. Recently, the company has launched an AI-generated customer support platform called Nugget. It is being used extensively in 1.5 crore customer interactions every month.
Company suffered loss
On the other hand, if we talk about the financial performance of the company, then in the third quarter of FY 2024-25, the net profit of the company has come down by 57 percent to Rs 59 crore. Whereas in the same period last year it was Rs 138 crore.
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