Zomato confirms laying off under 3% staff across organization

Food aggregator Zomato on Saturday confirmed that it will lay off under 3 per cent of its staff across the organisation. The company said that the laying offs are based on regular performance.

"There has been a regular performance based churn of under 3 per cent of our workforce, there's nothing more to it," said a Zomato spokesperson.

The Gurugram-based company had around 3,800 employees before this churn. Zomato last laid off 520 employees, or 13 per cent of its staff, in May 2020 in response to the downturn in business following the coronavirus pandemic.

The layoffs come soon after three top level exits from the company in the last few weeks.

 Zomato's co- founder Mohit Gupta quit the organisation on Friday. This follows the exits of Rahul Ganjoo, who was new initiatives head, and Siddharth Jhawar, the former head of Intercity Legends service, earlier this month.

Gupta leaves after a four-and-a-half-year stint at the Gurugram-based firm. He joined the company in 2018, and was leading the food delivery unit of Zomato. The company had elevated him as the co-founder in 2020.

“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," Zomato founder and chief executive Deepinder Goyal said in a note, according to a regulatory filing.

Zomato’s net loss for the September quarter narrowed to ₹250.8 crore compared to ₹434.9 in the corresponding quarter last fiscal. Meanwhile, revenue from operations rose by 62.20 per cent to ₹1,661.3 crore.

The company's food delivery business September quarter sales have grown only 22 per cent to ₹6,631 crore from ₹5,410 crore in corresponding quarter last fiscal.

On Friday, shares of Zomato settled at ₹67.15 apiece on the BSE, down 0.89 percent