Zomato Lays Off Over 600 Customer Support Executives Amid Rising AI Adoption
New Delhi, 2nd April 2025: In a fresh round of layoffs, online food and grocery delivery giant Zomato has let go of more than 600 customer support executives, just a year after hiring them. This decision comes despite notable growth in the company’s food delivery business, while its quick commerce subsidiary, Blinkit, continues to grapple with financial losses.
According to a report by Moneycontrol, Zomato had recruited 1,500 customer support executives under its Zomato Associate Accelerator Program (ZAAP). Many of these employees, who were expecting promotions after completing a year with the company, were instead laid off without prior notice. The company cited poor performance, disciplinary issues, increased AI adoption in customer support, and cost-cutting measures as the primary reasons for the layoffs.
Zomato has been focusing on automating its customer support services, significantly leveraging artificial intelligence (AI). Recently, the company introduced an AI-generated customer support platform named ‘Nugget,’ which is now handling nearly 15 million customer interactions per month.
On the financial front, Zomato’s net profit for the third quarter of the 2024-25 fiscal year saw a sharp decline of 57%, dropping to ₹59 crore from ₹138 crore in the same period last year. While the company’s core food delivery segment continues to expand, the increasing reliance on AI and cost-cutting measures indicate a shift in its operational strategy.
