View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. News
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.

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 Report
img

Navigate your business through the ‘new normal’

COVID-19 continues to dominate headlines the world over. It has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities.  Faced with an explosion of conflicting information on how to plan and implement successful recovery strategies, decision-makers are in dire need of a single, reliable source of intelligence.   GlobalData’s COVID-19 Executive Briefing gives you access to unparalleled data and insights to successfully navigate the uncertain road to recovery across the world’s largest industries. Understand every aspect of this disruptive theme by delving into: 
  •  COVID-19 infection update, with statistics on the spread, testing by country, as well as the latest data on vaccines and therapeutic developments 
  • Economic impact overview, covering stock market indices, GDP, unemployment rates, policy responses & GlobalData’s economic recovery scorecards 
  • Sector developments, with access to sector insight summaries, cross-sector indices and the leaders and laggards in each industry vertical 
Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today. 
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU