Zomato to Lay Off 240 Employees, Close Hyderabad Customer Support

Zomato, the food delivery company, is laying off around 240 employees and closing its customer support operations in Hyderabad, according to sources. The move follows a review of the company's customer support operating model and organizational requirements.

Over the past six months, Zomato has increasingly outsourced a larger portion of its customer support work to specialized external partners. Following the closure of the Hyderabad operations, its remaining in-house customer support team will be consolidated in Gurugram. This consolidation is intended to bring the team closer to Zomato's product, technology, analytics, and business functions.

Affected employees will receive their August salary along with four months' pay, comprising contractual notice pay and a one-time ex-gratia payment. Their medical insurance and access to counseling services will continue until March 31, 2027. Zomato will also transfer ownership of company-issued laptops and earphones to employees and provide outplacement assistance.

This restructuring is limited to the Hyderabad customer support team, with no similar changes planned for other teams at present. It is part of Zomato's broader overhaul of its customer support operations, which previously saw the company increase its use of AI and automation, leading to layoffs of about 600 customer support employees in April last year.

The layoffs come amid increased scrutiny of food delivery platforms regarding food quality, storage, and hygiene standards. Indian food safety regulators have recently taken action against several companies in the sector over alleged violations.