Zomato lays off 600 customer support employees without notice; here's why
The layoffs coincide with the company's increased use of artificial intelligence (AI) to automate customer support functions and reduce operational costs.
Zomato has reportedly laid off nearly 600 customer support associates within a year of hiring them, as the company faces slowing growth in food delivery and mounting losses in its quick commerce unit, Blinkit. The layoffs coincide with the company's increased use of artificial intelligence (AI) to automate customer support functions and reduce operational costs.
AI automation and job cuts
The move comes just weeks after Zomato launched 'Nugget,' an in-house AI-powered customer support platform developed over three years. Nugget is now handling over 15 million monthly interactions across Zomato's platforms, including Blinkit and Hyperpure. The AI system is capable of resolving up to 80% of customer queries without human intervention, significantly reducing the need for a large customer support workforce.
ZAAP employees reportedly affected
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According to reports, many of the affected employees were hired under the Zomato Associate Accelerator Program (ZAAP) in 2024. ZAAP was designed to offer customer support employees opportunities to transition into roles in sales, operations, program management, support, supply chain, and category management within a year.
However, several of these contractual employees, particularly those based in Gurugram and Hyderabad, did not have their contracts renewed. Reports suggest that these employees were asked to resign without a formal layoff announcement. Some employees have claimed they were let go without prior notice and were offered only a month’s salary as compensation.
Employee concerns over layoffs
Current and former Zomato employees have expressed concerns over the sudden job cuts, with some stating that the layoffs were attributed to reasons such as poor performance and punctuality. However, many believe the company’s growing reliance on AI-driven customer service automation has made their roles redundant.
A customer support associate, who chose to remain anonymous, told MoneyControl: “A majority of employees hired under Zomato’s ZAAP program last year have been let go over the past week without any clear explanation. This has taken place across their offices in Gurugram and Hyderabad. The atmosphere has become really tense.”
Zomato's previous layoffs
This isn't the first time Zomato has implemented large-scale layoffs. In December 2022, the company dismissed around 100 employees—approximately 4% of its workforce—across departments such as product, technology, catalogue, and marketing.
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