Zomato Axes over 500 Jobs, Cuts Salary up to 50% for Employees

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Bengaluru: Zomato, one of the leading food delivery startups in India, announced that it will axe 13% of its workforce or about 520 employees in order to reduce costs amid the coronavirus crisis. 

In a note to the Zomato employees, company’s Founder and CEO Deepinder Goyal said, “Our business has been severely affected by the COVID lockdowns. A large number of restaurants have already shut down permanently, and we know that this is just the tip of the iceberg”.

“I expect the number of restaurants to shrink by 25-40% over the next 6-12 months. What actually happens, for better or worse, is anybody’s guess”, Goyal said.

He said that there would be temporary paycuts for all employees, with up to 50% cuts for those earning more and those being laid off would be paid 50% of their salaries for six months.

From June, the company has asked for a temporary reduction in pay for the entire organisation.

Salary cuts will be up to 50 per cent for people with higher salaries and lower for those with lower salaries, it said.

The restaurant and hospitality sector has been amongst the worst hit by the coronavirus outbreak.

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