Zomato Layoffs: Tough Days Ahead For Food Delivery Startups?

Must Read

Free Netflix in India: A Result of Slow Growth In Q3 2020?

Netflix is testing a new strategy that could lead to free Netflix in India. The online streaming...

Reliance Jio Set To Blitz The 5G Smartphone Market With Jaw-Dropping Price

Cometh the revolution, cometh Reliance. This time the price of 5G smartphones under the radar of Reliance.

Apple iPhone 12: Not For India And You Must Not Fall Prey To Apple’s Marketing Machine

The cat is out from the bag, finally! Apple iPhone 12 has launched in the most sophisticated...

The latest news of Zomotao layoffs shouldn’t surprise many as the writing was on the wall.

The food delivery startups in India are going through a tough phase as the lockdown situation appears to enter into the 4th phase amid the rising number of +ve Coronavirus cases and increasing death toll. Sensing the tough market conditions which are far from over soon, Zomato has decided to let go its 13% of its total workforce.

Besides laying off over 500 employees, Zomato has also decided to introduce up to 50% of salary cut of rest all employees. The pay cut, however, is going to be a temporary arrangement until the market does show a sign of improvement.


Citing the fast-changing market conditions that appear to stay permanently, Dipender Goyal, CEO – Zomato, has said that the layoff was inevitable.

“Multiple aspects of our business have changed dramatically over the last couple of months and many of these changes are expected to be permanent. While we continue to build a more focused Zomato, we do not foresee having enough work for all our employees.” Goyal said in an email sent to all employees.

However, to make the transition smooth and less troublesome for outgoing employees, Zomato is taking all the measures, including finding a new job and financial support. The company has formed a separate team to help these outgoing employees.

Goyal blamed the global outbreak that led to an unprecedented shutdown of restaurants across the nation for the layoffs. He informed that nearly for over two months almost 95% of restaurants remained closed and 30%-40% of those would have been closed permanently. Due to the uncertainty and ongoing changes that could stay for a very long period various aspects of Zomato business have been impacted.

Goyal believes that this is just the tip of the iceberg, hinting that the testing time could continue for a very long time due to the spread of novel Coronavirus.

Zomato is neither the first startup nor the first food delivery startup in India that is laying off its employees due to Coroniosvirus outbreak. Just last month Swiggy also decided to lay off 1,000 employees as the demand plunged by 60%, especially after the incident of Pizza delivery boy who was found infected with novel Coronavirus. This caused over 72 families who got Pizza delivered by him to go under quarantine. But the news shook people across the country who was relying on food delivery during the lockdown. Within just 3 days, the number of food delivery orders plunged by 50% and many delivery boys found themselves with no customer to serve.



Please enter your comment!
Please enter your name here

Latest News

Can Facebook Be Trusted For Newly Announced Hosting and Shopping Services?

Every coin has two sides. For Facebook Inc. (NASDAQ:FB), the positive side says that it has launched...

When the Going Gets Tough, the Tough Gather Online

Tech shows; we all know them, love them, and wish we could get to them. Unfortunately, that's not always possible. Or is...

Flipkart, Amazon Hurtle To Secure Their Slice in Aditya Birla Fashion

The battle conch for the festive season has already been blown. Now in a bid to take control of a new frontier,...

Jio Pages: The Indian Browser Reliance Is Betting On Now!

Looks like Reliance wants to establish Jio as a synonym of technology. After launching a fleet of Jio products in the last...

Less Than 5% Internet Users In India Have Netflix Subscription

The third-quarter earnings report of Netflix is out; The streaming giant beats the Wall Street expectations in terms of revenue but fell...

Free Netflix in India: A Result of Slow Growth In Q3 2020?

Netflix is testing a new strategy that could lead to free Netflix in India. The online streaming giant is exploring options to...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This