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May 18, 2020

Covid-19 impact: India’s Zomato to lay off more than 500 employees

Indian food delivery app Zomato is set to lay off more than 500 employees amid the downturn caused by the Covid-19 pandemic.

Indian food delivery app Zomato is set to lay off more than 500 employees amid the downturn caused by the Covid-19 pandemic.

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In a blog post, Zomato founder and CEO Deepinder Goyal said that the company will not be able to offer work to 13% of its workforce due to the challenging work environment.

The decision comes after the food delivery business in India has been severely affected due to Covid-19-related lockdowns that forced restaurants across the country to temporarily close.

Goyal noted that the company will help the affected employees to find new jobs.

Zomato also proposed temporary reductions in pay for the entire workforce with up to 50% for those with higher salaries. The pay cuts are expected to be implemented from the next month.

Additionally, the food delivery company operates more than 150 offices around the world.

In addition, Zomato took steps to cut sales and logistical expenses by reducing its real estate costs.

The plan involves implementing permanent working from home for certain departments with office presence required during meetings, performance reviews and other tasks.

The company noted it has sufficient capital to support the growth of its business.

Goyal said: “We remain committed to growing towards our mission at the same pace as before. We will continue to hire people in areas where we need them the most, primarily in product and engineering.”

Zomato acquired Uber Eats’ business in India for an all-stock deal earlier this year to boost its footprint in the food delivery market.

Last month, the company raised $5m in a new funding round to support its business.

Free Whitepaper
img

What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

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