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Zomato's AI push leads to 600 job cuts in customer support: Report
The Gurugram-based food delivery platform hired 1,500 employees under its Zomato Associate Accelerator Program (ZAAP) a year ago in customer support roles across sales, operation, programme management departments
Mass layoffs seen in Zomato as the company leverages on AI tech
Zomato has reportedly laid off 600 employees from its customer support team within a year of hiring. This comes as the company announced an AI-powered customer support platform, called Nugget, to automate its operation in February this year. Zomato CEO Deepinder Goyal has said that Nugget is able to resolve up to 80% of queries automatically, can learn and adapt in real-time, and doesn't require users to know coding.
The Gurugram-based food delivery platform hired 1,500 employees under its Zomato Associate Accelerator Program (ZAAP) a year ago in customer support roles across sales, operation, programme management departments. However, hundreds of these contractual workers did not get a renewal at the end of their tenures, Moneycontrol reported.
The affected employees were given one month's salary as compensation and terminated without any notice period.
Goyal, in one of his posts on the X platform, said that Nuggets was built in more than three years and has achieved over 15 million interactions every month for Zomato, Blinkit, and Hyperpure.
Zomato witnessed a 57% drop in consolidated net profit in the third quarter of the fiscal year 2025. The startup reported Rs 59 crore in Q3 compared to Rs 138 crore in the corresponding quarter last fiscal.
The drop in profit was attributed to a rise in expenses linked to Blinkit's expansion.
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