Zomato lays off 600 customer support staff as it increases AI use to cut costs: Report

The idea that AI has been replacing these jobs comes from its recent launch of Nugget, an AI-powered customer support platform for businesses worldwide.

Published on: Apr 1, 2025, 17:18:24 IST

By HT News Desk

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Zomato has laid off as many as 600 customer support associates within just a year of hiring them at a time when it has been increasing the use of artificial intelligence (AI) for customer support to cut costs.

The Gurugram-based company had hired as many as 1,500 employees under its Zomato Associate Accelerator Program (ZAAP) a year ago for customer support roles. (Unsplash)

This also comes with the company witnessing slowing growth in its core food delivery vertical (third-quarter profits down 57% year-on-year), as well as mounting losses in its quick commerce arm Blinkit, according to a Moneycontrol report.

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The Gurugram-based company had hired as many as 1,500 employees under its Zomato Associate Accelerator Program (ZAAP) a year ago for customer support roles.

It even offered chances for them to get promoted to roles across sales, operations, program management, support, supply chain, and category teams, within just a year.

However, around 600 of these same workers at the company's Gurugram and Hyderabad offices did not get their contracts renewed after their tenures.

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The affected workers were offered a month’s salary as compensation and were terminated without notice, citing reasons like poor performance and punctuality, among others, according to the report.

The idea that AI has been replacing these jobs comes from its recent launch of Nugget, an AI-powered customer support platform for businesses worldwide, which is currently powering more than 15 million support interactions per month for Zomato, Blinkit, and Hyperpure, according to the report.

Zomato's previous layoff round was in December 2022, with as many as 100 employees, or roughly four percent of its workforce, sacked across functions like product, tech, catalogue and marketing.

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Before this, co-founder and chief people officer Akriti Chopra left the company last year, followed by former CTO Gunjan Patidar in January 2023.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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