Zomato to lay off 13% of its workforce, up to 50% pay cut for rest

Indian restaurant aggregator and food delivery startup, Zomato has announced extensive measures in the wake of coronavirus outbreak including letting go of 13 per cent of its workforce. Zomato CEO Deepinder Goyal shared an internal email sent to all employees of the company citing the challenges that lay ahead of them saying “we do not foresee having enough work for all our employees”. Citing that the industry has been severely hit with unprecedented shutting down of restaurants and food chains across the nation, Goyal said that the number of food-eating places is expected to shrink by at least 25-40 per cent over the span of next 6-12 months. 

In a bid to create a “more focussed Zomato”, Goyal has also announced salary cuts. However, those employees who no longer have any work with the company will continue to receive 50 per cent of their income at Zomato for next six months. 

“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,” said Goyal.

He added, “We owe all our colleagues a challenging work environment, but we won’t be able to offer that to ~13% of our workforce going forward.”

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‘We stand with them’

The Zomato CEO also informed that over the course of the next few days, he will get on video calls with other senior officers at the company and affected employees to brief them about the next steps including assistance in finding new jobs. Assuring financial as well as emotional support, Goyal said that “we stand by them”. 

He said, “Over the next couple of days, GG, MG and I will be getting on video calls with impacted employees to walk them through the next steps and help find them jobs as soon as possible."

"We are going to assure them that we stand by them, and will financially and emotionally support them to the fullest possible extent,” the Zomato CEO added.

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Image Source: PTI