Zomato wants executives to quit as part of a company-wide layoff
- ByStartupStory | November 21, 2022
An individual with knowledge of the development who asked to remain anonymous claimed that the food delivery aggregator Zomato is laying off staff members across areas, including technology, product, and marketing. “There has been a regular, performance-based churn of under 3% of our workforce; there’s nothing more to it,” a Zomato spokesperson said. Prior to this churn, Zomato employed about 3,800 people.
Zomato last reduced its workforce by 520 employees, or 13% of its total workforce, in May 2020 as a result of the decline in business that followed the coronavirus pandemic. At least 17,000 people have lost their jobs so far in 2022 as startups reduce their workforces in an effort to turn a profit. In an effort to save expenses, tech companies Twitter, Meta, and Amazon have all fired 25,000 people globally.
In the meantime, on Friday, its co-founder, Mohit Gupta, announced his resignation, marking the third significant departure of a top executive from a leadership position this month.
After working for the Gurugram-based company for four and a half years, Gupta has decided to depart. He began working for the company in 2018 and oversaw Zomato’s meal delivery division. In 2020, the business promoted him to co-founder. This follows the departures earlier this month of Siddharth Jhawar, the former head of Intercity Legends, and Rahul Ganjoo, the head of new projects. Two months after Zomato went public, Gaurav Gupta, another former co-founder, resigned.
“MG (Mohit Gupta)—you have been a brother and a friend to me over the last few years. You have done a tremendous job here, brought us back from the brink of extinction, scaled the business to new heights, got us to profitability, and above all, coached me over the years to become capable of running such a large and complex business,” According to a regulatory filing, Deepinder Goyal, the founder, and CEO of Zomato, stated in a note. As a result of an increase in revenue from food delivery and its wholesale Hyperpure unit, Zomato recorded a net loss of 251 crore for the third quarter, down from 430 crore the year prior. Operational revenue increased from 1,024 crore a year earlier to 1,661 crore, a 62% increase. At the close of Friday’s trade, Zomato shares were trading for 61.15 each.
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