Stating that the COVID-19 crisis has been a black swan event for the world economy, Zomato founder and CEO Deepinder Goyal announced in a blog that the food delivery app will lay off 600 employees and the other employees will work with a reduced salary up to 50%. This process will begin from June 2020.
Describing the virus and its effects as having severely affected the food industry with many restaurants shut over the past few months, Goyal said that “we do not foresee having enough work for all our employees”.
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Over the next few days, the company will get in touch with those who are being retrenched on a zoom call and take them through the entire process.
Zomato will also be enforcing a pay cut for all its employees up to 50%. Those receiving a higher salary will be taking more of the burden in this process.
Also, those who do not have any work in the company will receive 50% of their salary for the next six months and will be asked to find a job during this period.
Employees who are in the direct payroll of the company will receive severance pay up to 2 months as opposed to 15 days. They will also be permitted to keep their company-issued phones and laptops.
Zomato has constituted a team to handle the fall out of this virus.
The employees will also continue to receive their health insurance for the next six months and will also be given permission to work from home for the next few months.
With an economic recession becoming a reality in many parts of the world, India continues to fight against it with major companies feeling the brunt of it.