Zomato Layoffs 600 employees amid slowdown and AI efficiencies

Zomato, a leading quick commerce and food delivery company has laid off 600 customer support associates over the past year after improving efficiency with its AI-powered support platform Nugget, according to media reports.

Soon to be renamed Eternal, Zomato had hired around 1,500 employees under its Zomato Associate Accelerator Programme (ZAAP), mainly for customer support roles, with an option to transition to other positions. However, most of these contract workers were not retained after their tenure ended.

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More than 500 employees from Zomato’s Gurugram and Hyderabad offices were reportedly laid off with little to no warning. Some employees claimed the reasons for termination were unclear and unfair, including minor attendance issues, manager relationships and AI-generated performance reviews.

Zomato’s food delivery business is growing slowly due to lower consumer spending and challenges in expanding beyond the top eight cities. At the same time, Blinkit is facing rising losses as it expands quickly and deals with strong competition in the quick commerce market.

In February, Zomato launched Nugget, its AI-powered customer support platform for businesses. CEO Deepinder Goyal described it as a no-code, AI-native system that resolves up to 80% of queries autonomously and already handles over 15 million support interactions for Zomato’s brands.

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