Zomato to lay off 13 percent staff, up to 50 percent wage cut for the rest

Zomato, one of the most popular restaurant aggregators and food delivery start ups in India, has announced its decision to let go of nearly 13 percent of its staff, while a wage cut of up to 50 percent have been announced for the rest of the employees. This decision was conveyed to employees by Deepinder Goyal, the founder and CEO of the company through an internal email.

“While we continue to build a more focused Zomato, we do not foresee having enough work for all our employees. We owe all our colleagues a challenging work environment, but we won’t be able to offer that to around 13% of our workforce going forward,” said Deepinder Goyal in his email.

How will Zomato staff be informed about the job cuts?

The leaders of the company will personally video call employees over the next few days to walk them through the next step and also help them find a new job, said Goyal. Nevertheless, the company promises to pay 50 percent of the salary for the next six months to these employees. Also, health insurance and previously allocated ESOPs will continue to vest during this period of 6 months.

Employees who can no longer be a part of Zomato will get invites for a zoom call with the leadership team within the next 24 hours. These invites will be sent to employees through email and Dingtalk. For those who have not been impacted, the Zomato HR will send a mail stating that they will continue to hold their positions.

Apart from these measures, Zomato says that partial or full work-from-home is all set to become a permanent feature in the organization. This cost-cutting measure has been taken as real estate is the highest recurring expense for the organization apart from payrolls.