Zomato intends to reduce its workforce by 3%

Zomato, an online platform for meal delivery, announced on Saturday that it will be letting go close to 3% of its workers in an effort to reduce costs and turn a profit.

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Zomato, an online platform for meal delivery, announced on Saturday that it will be letting go close to 3% of its workers in an effort to reduce costs and turn a profit.
The choice was made after numerous tech behemoths and social media platforms announced layoffs. Layoffs, according to Zomato, will be determined by regular performance.

There has only been a routine performance-based turnover of less than 3% of our workforce, according to a Zomato spokesperson. Currently, the business employs close to 3,800 people.

In May 2020, Zomato fired 520 workers, or 13% of its workforce, in reaction to a drop in business caused by the Covid epidemic. Mohit Gupta, a co-founder of Zomato, left the company on Friday.

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Additionally, the meal delivery service said earlier this week that Rahul Ganjoo had left his position as Head of New Initiatives after five years.

Siddharth Jhawar, vice president of global growth at Zomato, made a similar announcement earlier in the month. Several of Zomato’s senior executives have opted to quit because the company has been losing so much money. Last week, the company announced its quarterly earnings for the September quarter (FY 2022-23); a loss of Rs 250.8 crore was reported, compared to Rs 434.9 crore during the same time in the previous year.

Market selling pressure has also been there for Zomato’s stock. After reaching a peak of Rs 161.90 in November of last year, the share price has decreased by more than 58%. The company’s stock was launched on the BSE on Friday for Rs 67.15.