Online food delivery platform Zomato had announced it will expel 13 percent of its staff owing to the sharp drop in business during the Covid lockdown. According to a report, orders on Swiggy and Zomato have dropped by 60 percent amid the pandemic.
Zomato, however, said that it will continue to support the fired employees both “financially and emotionally for the next six months”.The online food delivery business which boomed prior to the pandemic hit nose dived as many restaurants were closed permanently.
In an email addressed to Zomato employees, CEO Deepinder Goyal explained that the firm’s business was “severely” impacted by the coronavirus-led lockdown.
“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”.In an email to his employees, Goyal had made it clear that the company doesn’t “foresee having enough work for all”.
The firm has, however, said that those notified of termination can work with the organization for the next six months on 50 percent of their current salaries. During this period, they expect these employees to give 100 percent of their attention to looking for jobs outside of Zomato. They will also be allowed to keep their company-issued laptops and phones. Even though the need of the hour forces Zomato to restructure, the e-mail asserts that Zomato’s “financial runway looks solid”.