Bad News For Zomato Employees: Firm to Layoff 13% of Its Workforce, Cut 50% Salaries For Six Months

New Delhi: Restaurant aggregator Zomato said on Friday said it is going to layoff around 13 per cent of its workforce and cut 50 per cent of pay for the remaining staff for six months starting June, on account of the impact of COVID-19 pandemic. Notably, the company has around 4,000 employees in different roles. In a blog post, Zomato Founder and CEO Deepinder Goyal said multiple aspects of the company’s business have changed dramatically over the last couple of months and many of these changes are expected to be permanent. Also Read – Zomato Gives Out Rs 2.64 Crore to 3,100 Restaurant Workers Amid COVID-19 Crisis

All those who are impacted will get invites for a zoom call with the leadership team within the next 24 hours, Goyal said. Also Read – After Grocery, Now Zomato Plans to Venture Into Liquor Delivery: Report

“While we continue to build a more focussed Zomato, we do not foresee having enough work for all our employees. We owe all our colleagues a challenging work environment, but we won”t be able to offer that to around 13 per cent of our workforce going forward,” he added. Also Read – Lockdown 2.0: Swiggy, Zomato See Surge in Food Orders After Initial Decline

Goyal said he along with COO and co-founder Gaurav Gupta and CEO Food Delivery Mohit Gupta would be getting on video calls over the next couple of days with impacted employees to walk them through the next steps and help find them jobs as soon as possible.

On the financial support to these employees, he said: “All our employees who no longer have any work at Zomato, will continue to be with us at 50 per cent salary for the next 6 months. During this time, outside of the handover period of 1-2 weeks, we expect these folks to spend 100 per cent of their time and energy towards looking for jobs outside of Zomato”.

Goyal also said the company will provide them outplacement support and also health insurance for 6 months or as soon as they find another job.

Previously allocated employee stock ownership plans (ESOPs) will continue to vest during this period of 6 months, he added.

Goyal also said,”Starting June, I am proposing a temporary reduction in pay for the entire organisation. Lower cuts are being proposed for people with lower salaries, and higher cuts (up to 50 per cent) for people with higher salaries”.

Zomato expects these cuts to be discontinued as soon as the economy starts getting back on track. “I foresee and hope this to be around 6 months from now,” he added.

(with agency inputs)