Zomato Lays Off 240 Employees, Shuts Hyderabad Customer Support Operations

Eternal's food delivery company, Zomato, has let go of approximately 240 employees as it discontinues its customer support operations in Hyderabad, according to sources speaking to Inc42. This decision stems from a review of the company's customer-support model and organizational needs, the sources added. Over the last six months, Zomato has redirected a larger portion of its customer-support work to specialized external partners.

Following the closure of the Hyderabad team, the remaining in-house support staff will be consolidated in Gurugram to better align with Zomato's product, technology, analytics, and business functions, the sources explained. The Economic Times first reported the announcement, citing around 250 employees affected. Inc42 has reached out to Zomato for a response, which will be updated if received.

Affected employees will be compensated with their August salary and four months' pay, including contractual notice pay and a one-time ex-gratia payment. Their medical insurance and access to counseling services will remain until March 31, 2027. The company will also transfer ownership of company-issued laptops and earphones to the employees for personal use.

Outplacement assistance will be provided to help them find new job opportunities. The restructuring is solely focused on the Hyderabad customer support team, with no similar changes planned for other teams at the moment. This move is part of Zomato's broader effort to refine its customer support operations. In April of last year, the company reduced its customer support workforce by around 600 employees across Gurugram and Hyderabad as it increased its reliance on AI and automation.

Zomato has recently implemented a zero-tolerance policy on dishes containing analogue dairy products, including analogue paneer, and has removed items from restaurants that declared such products. Maharashtra's FDA suspended the licenses of 14 food establishments associated with Blinkit, Zepto, and Swiggy Instamart following inspections that revealed alleged food safety and hygiene violations.

Zomato's Bengaluru-based Hyperpure facility also received a notice for lapses in licensing, labeling, and storage. Rapidly growing competitors like Rapido and Flipkart are introducing new initiatives, including Ownly and a lower commission model, respectively, while already dominant players Zomato and Swiggy face increasing competition in both food delivery and quick commerce sectors.