Zomato lays off over 500 employees due to automation

Rohithari Rajan, join, Zomato, Global Head, Ad Sales Business, NewsMobile, Mobile News, India, Start o Sphere, Startup
A report by Business Standard stated that with the improving resolution of customer queries on its platform through artificial intelligence (AI) driven bots and automation, food delivery platform Zomato has laid off ten percent of its employees across customer, merchant, and delivery partner support teams.

Terming the need to shelve off as many as 541 employees, 10 per cent of company’s strength, as a painful decision, the company said, “to make the transition smoother, we have extended between two-month severance pay (based on tenure), family health insurance cover (till the end of January 2020) and career fair opportunities with companies.”

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Having switched to Artificial Intelligence (AI) driven bots and automation, the company has shrunk the workforce needed to resolve customer and order related support queries.

“Over the last few months, we have seen our technology products and platforms evolve and improve significantly. This has led to an overall reduction in direct order-related support queries,” the company said in a statement.

However, Zomato has claimed that it has expedited the hiring in technology, product and data sciences roles.

The company has already hired 1,200 persons across functions (excluding its last-mile delivery fleet), with additional 400 persons on off-roll positions.

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