Zomato Sacks 3 Per Cent Workforce In 'A Performance Based Churn'
“There has been a regular performance based churn of under 3 per cent of our workforce, there's nothing more to it,” said a Zomato spokesperson.
Zomato, the food tech app on Saturday confirmed that it has laid off under 3 per cent of its staff across the workforce. The company has said that these layoffs are based on regular performance.
“There has been a regular performance based churn of under 3 per cent of our workforce, there's nothing more to it,” a Zomato spokesperson told MoneyControl.
The Gurugram-based food aggregator reportedly had around 3,800 employees before this churn. In May 2020, the company cut off 13 per cent of its staff. This was mainly due to the downturn in business following the Coronavirus pandemic.
On Friday, it was announced that co-founder Mohit Gupta has left the organisation. It was followed by the exits of three top-level executives from the company in the last few weeks.
"Over the past few years, I have seen Deepi (Deepinder Goyal) become an even more mature and confident leader who is now completely capable of leading the business into a bright future with all of you by his side. It is with this confidence that I am deciding to move on from Zomato to seek the other unknown adventures that life holds for me," Gupta said in his farewell note.
This year Zomato has suffered in the public market amid a meltdown of tech stocks. The company’s stock price has fallen by more than 50 per cent from its peak of Rs 162 on the BSE. The growth of the company’s food delivery business has also slowed.
In the September quarter, Zomato’s net loss narrowed to Rs 250.8 crore compared to Rs 434.9 crore in the corresponding quarter last fiscal. Meanwhile, revenue from operations has risen by 62.20 per cent to Rs 1,661.3 crore.
Layoffs in Zomato comes as many other global tech companies have also been trimming their workforce amid concerns about an economic slowdown.
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