Zomato has laid off nearly 10% of its workforce citing automation and service improvements. The redundancies will affect 540 people in the company’s customer support team and come on top of the 60 jobs axed in August. Zomato said only 7.5% of its orders now needed support, down from 15% in March. Food-tech companies including rival Swiggy are deploying chatbots for customer queries to keep a lid on costs.
During the last few months, there has been a lot of automation in support functions, due to which the speed of work increased. Now most of the complaints are resolved by Chabot.
Don’t understand why every other company is issuing pink slips to employees…why don’t some try to think put of the box & do something on this. When can we expect skill of top management. Why can’t it happen to reduce salaries by 10% for all employees & drive it on target based.
Now the company only needs support for 7.5% orders, which was 15% in March, 2019. Gurgaon-based Zomato fired 540 people from the support team for merchants, merchants and delivery partners within two months. The company says, “Our technology products and platforms have improved and business is also growing continuously.” This has led to reduced direct order support queries. Our speed in solving service related problems has increased. According to the company, now only 7.5% of our orders require support, which was 15% in March. Now most of the complaints are resolved by Chabot, due to which the speed is increased and the quality of the customer service is also increased.
The news about corporate layoffs seems to be a daily occurrence. This time the layoffs are taking place in India with Zomato, an Indian restaurant aggregator and food delivery company.
Zomato says it was not so easy to decide to lay off 10% of the staff. The company is paying 2-4 months dismissal pay to the employees who are fired.
Unrealistic projection, overambitious workforce growthplan to acheive personal growth agenda, no proper talent plan, undefined and irrelevant vision by the top management, disconnect from the ground reality
Business owners and corporations alike will be watching the global economy as many countries are likely heading for a recession.
Actually There should be law to pay at least 6-12 months salary to lay off employees
This will no doubt impact businesses everywhere, including mine. In the next week I will take time away from the office for another Power Business Retreat to review, strategize and adjust my current business model.
It may appear to be an absurd proposition in any economy for that matter but if you read henry ford, he was never in favor of lay offs but upgrading skills. Being an investor i may feel like it waste of money but let us try to look from a different angle. Let us say that all start to automate and all layoff then who is going to buy the end product, where does it lead to? Automation is definitely good but at the end of the day, it is the humans who are going to buy and if we keep taking away their pay cheques and keep a sword hanging over their head, how do we suppose that they are going to spend.