Zomato lays off 13 percent employees, cuts 50% salary of others

Pune, May 16, 2020: The third phase of the Coronavirus epidemic is underway in the country and meanwhile bad news has come to the fore for employees of online food delivery company Zomato.  The company has decided to terminate jobs of 13 % of its employees.

Also, the company has decided to cut the salary of its remaining employees by 50 percent for the next six months. This reduction in salary will be from the month of June. Zomato said that they are taking this decision due to a decrease in demand during the nationwide lockdown implemented due to the Coronavirus outbreak.

The founder and CEO of the company, Deepinder Goyal, told his employees on Friday, “We find that there will not be enough work for all our employees in future. We have advised 13% of our workforce to start looking for jobs outside of Zomato, while we support them financially and emotionally for the next 6 months. We remain committed to our mission of better food for more people, and are determined to continue building Zomato with renewed love and passion for our world and our community.”

Goyal said that the company needs to prepare itself for the bad times to come. He said that his business has undergone unprecedented changes in the last few months and many of these changes are expected to be permanent.

Zomato has taken this step at a time when governments are moving towards giving a lot of relaxation in lockdown. The central government has also given several exemptions to businesses in the third phase lockdown, which came into effect from May 4. Apart from this, Prime Minister Narendra Modi has also said that Lockdown 4.0 will be different. Significantly, the lockdown has been in force in the country since 25th March. The third phase of the lockdown ends on May 17. Meanwhile, the government has also announced an economic package of Rs 20 lakh crores