ADVERTISEMENTREMOVE AD

Zomato Lays Off 541 Staffers, Owing to AI-Driven Automation

Zomato said that it has laid off 10% of its strength across customer, merchant and delivery partner support teams.

Published
India
2 min read
story-hero-img
i
Aa
Aa
Small
Aa
Medium
Aa
Large
Hindi Female

Food delivery platform Zomato on Saturday, 7 September, said that it has laid off 541 people, which is 10 percent of the company's strength, across customer, merchant and delivery partner support teams.

The reason behind the move is an improved Zomato platform with Artificial Intelligence-driven bots and automation for resolving customer queries, having led to an overall reduction in direct order-related support queries, the company said in a statement.

"While this has been a painful decision, to make the transition smoother, we have extended between two-month months severance pay (based on tenure), family health insurance cover (till the end of January 2020) and career fair opportunities with companies," said Zomato.

ADVERTISEMENTREMOVE AD

The company, which is at the loggerheads with the National Restaurant Association of India (NRAI) over deep discounts in its fine-dining Gold programme, claimed it has improved the speed of service resolution and now only 7.5 percent of its orders need support (down from 15 percent in March).

"Over the last few months, we have seen our technology products and platforms evolve and improve significantly. This has led to an overall reduction in direct order-related support queries," said the company.

Zomato said it hired over 1,200 people across functions (excluding its last-mile delivery fleet) and another over 400 off-rolls positions, and is currently hiring in technology, product and data sciences teams.

The company is planning to introduce its Gold programme across multiple cities on its delivery platform.

The NRAI said on 30 August that there is an in-principle agreement between the association and the two major online delivery platforms, Zomato and Swiggy, to resolve the issues of the industry including deep discounts.

However, Zomato is hellbent on carrying on with its plans to make its Gold programme now available for delivery.

(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)

0

Read Latest News and Breaking News at The Quint, browse for more from news and india

Topics:  Zomato   Artificial Intelligence   Lay Off 

Speaking truth to power requires allies like you.
Become a Member
3 months
12 months
12 months
Check Member Benefits
Read More
×
×