New Delhi:
Popular online food delivery platform Zomato has allegedly appointed 600 customer support employees, exactly one year after hiring them.
The company faces challenges in its main food distribution business as a reported trimmed and face increasing losses in its quick commercial assistant, blinkit.
According to reports, the company last year hired around 1,500 employees to fill the customer support roles through their ZOMATO Accelerator Program (ZAAP).
However, in recent weeks, many of these employees have been allowed to go without any prior information or opportunity to improve their performance, the report states.
Employees who were fired received a month’s salary in the form of compensation, but the sorting was allegedly based on issues such as poor performance and time ban.
The report stated that the decision to reduce your customer aid team is part of a comprehensive strategy to cut the cost, including using artificial intelligence (AI) to automate customer support functions.
The move is seen as an attempt to reduce operating expenses as the company faces a slow growth and high loss in its business.
When it arrived, the online food aggregator now refused to comment.
The report stated that the retrench has affected employees in cities like Gurugram and Hyderabad, and there is an increasing fear among the remaining employees about their job safety.
Some of the affected employees took their experiences on social media to share their experiences, with a user mentioned that about 300 people were fired without any warnings.
Despite the sorting, Zomato’s stock saw a slight increase of 0.84 percent during Tuesday’s intra-day trading session, which closed at Rs 203.20.
Meanwhile, last month, the Bank of America (Bofa) downed its ratings on Zomato, which referred to concerns over the increase in food distribution and the increasing competition in quick commerce.
Brokerage modified Zomato’s rating from ‘buy’ to ‘neutral’. With downgrade, Bofa also reduced the target prices for the food aggregator.
The target price of Zomato was reduced by Rs 300.
(Tagstotransite) zomato
