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Lays off in Zomato continue to touch 540 from it’s customer support team

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Automation in the industry has taken away many jobs in the accounts and HR/IT departments in many organisations. In many organisations CEO has to do the role of CIOs/ IT head. As the automation is continue to rise, there will be few millions of jobs across the Globe and India are at high risk of losing their jobs to automation, as per a subject matter expert.

 

Zomato has laid off 540 employees from its customer support team, comprising 10% of its overall workforce, the company said in a statement Saturday, because the jobs has automated, it is the second round of layoffs in a month at the food delivery and restaurant discovery platform, after 60 people were let go in August.

Zomato said these jobs will be automated and those laid off will get severance of two to four months.

“Over the last few months, we have seen our technology products and platforms evolve and improve significantly. We have dramatically improved the speed of service resolution, such that now only 7.5% of our orders need support (down from 15% in March),” the company said in a statement. Zomato said that, it would organise a job fair to help those laid off find employment and would extend insurance support until January 2020.

Recently,  National Restaurants Association of India (NRAI) said, over its contentious membership programme, Gold. The restaurants have asked Zomato to dilute its programme, which gave customers one dish or drink free, saying deep discounting was hurting their business. These restaurants have been resisting the programme by logging out of it. Of the 6,000 restaurants that originally signed up with Zomato, over 33% have joined the NRAI’s #logout campaign.

 

This fracas has now led to restaurants asking Zomato and its rival Swiggy to decrease the commissions they charge on food deliver and the NRAI has given both the companies until the second week of September to come back with proposals to help ease tensions between them.

ET reported earlier that Zomato has been in the market to raise a $500 million round and it’s existing investor Ant Financial, an affiliate of Chinese internet giant Alibaba, may not lead the round.

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