Zomato is set to lay off more than 200 employees in Hyderabad as part of the company’s major customer support shake-up. This will be felt by employees in the company’s “customer delight” section, which works with customers on customer support.
According to the report, about 240 employees could be affected by the restructuring exercise. The layoffs are part of the changes in the company’s customer support system for the last six years that have brought changes to the food delivery business.
The industry executive cited in a Live Mint report said the changes are linked to a restructuring of the company's customer support operations. From the office in Gurugram, the customer support function will be considered “one functional team” under the new model.
The restructuring will have an impact on the Hyderabad customer delight team employees who are currently working for the company. The company has said it has planned a support package for the affected employees, but the situation is only one of several workforce cuts in the tech and startup industry in India.
According to the report, employees affected by the layoffs will receive their salaries for August and four months’ pay. The compensation package would include contractual notice pay as well as a one-time ex-gratia payment.
The employees who left the company will still receive some extra benefits after leaving the company, including medical insurance and counselling support until March 2027. And those are measures designed to assist employees in their transition after the restructuring.
According to reports, employees affected by the layoffs will be allowed to keep their company-issued laptops for personal use and will be able to own the devices as the devices are transferred to them. And the company will also assist employees affected in finding jobs.
The latest layoffs follow a previous workforce reduction at Zomato in April 2025. It was reported that 500 junior-level employees who were part of its associate programme were sacked.
The new development is part of a larger trend of reorganisation and layoffs at a series of major companies. Businesses have been cutting costs, reorganising teams and investing in new technologies like artificial intelligence and automation.
Earlier this year, Livspace’s interior design company announced a layoff of 1,000 employees as part of an internal reorganisation to match the company’s AI and operational changes.
Other big companies have also reduced workforce. Flipkart laid off around 400 employees in March and Amazon cut jobs in India as part of a worldwide restructuring plan. Amazon's global job cuts impacted thousands of employees in various markets, according to reports.
Paytm also announced job cuts in June, with around 400 employees said to have been affected. The company's workforce is said to have been reduced by one percent, according to the report.
The massive number of layoffs has caused some employees in India’s technology, startup and digital services industry to be concerned. Companies have cited different reasons for workforce restructuring from business strategy to cost management to automation and the increasing use of artificial intelligence.
For Zomato, the reported restructuring seems to be focused on consolidating customer support operations. The move to running the function as one Gurugram team could change customer service and support operations across the organisation.
The reported employee support measures, such as more compensation, medical insurance, counselling and job search help, will be expected to provide some support to workers affected by the restructuring. But the loss of more than 200 jobs would mark another significant workforce development for the food delivery and technology sector.
Companies continue to assess their operational structure and centralisation in the service delivery and use technology for the services as a major driver of employment is likely to remain. The reported layoffs of Zomato are emblematic of how corporate restructuring continues to impact people when companies adapt their operations to changes in the market as well as technology.
