Promised growth, handed pink slips—why Zomato’s ZAAP program turned into a nightmare for 600 employees.
Zomato, the food delivery giant, has laid off 600 customer support employees hired under its Zomato Associate Accelerator Program (ZAAP) just a year after recruiting them.
Zomato promised these workers promotions, but the company let them go without clear explanations, shocking many.
Why Did This Happen?
The company is facing a double challenge: slowing growth in its core food delivery business and mounting losses in its quick-commerce arm, Blinkit.
To cut costs, Zomato is aggressively automating customer support using AI. Its new tool, Nugget, now handles over 15 million support interactions monthly, making human roles redundant.
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How Were Employees Affected?
Most of the laid-off workers were contractual hires who didn’t get tenure renewals. Some managers abruptly terminated employees with just a month’s salary as compensation, blaming “poor performance.” Employees describe the atmosphere as “tense,” with layoffs happening across offices in Gurugram and Hyderabad.
Bigger Picture: Struggles and Exits
Zomato previously laid off 100 employees in 2022 across product, tech, and marketing teams. The company has also seen top-level exits, including co-founder Akriti Chopra and former CTO Gunjan Patidar.
Despite a 64% rise in revenue, profits dropped 57% year-on-year, reflecting deeper struggles.
What’s Next?
With AI taking over and growth slowing, Zomato’s workforce may face more uncertainty. For now, the focus is on automation—but at what cost to its employees?
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