As Covid-19 severely impacted food ordering business, Zomato to lay-off 13% of its staff

Zomato laying-off 520 number of its staff which is about 13% of its workforce and also to undertake upto a 50% pay cut for the remainder of the organisation Instead of a direct severance package, the people affected by the layoffs will get half of their salaries along with health insurance for the next six months or till they find their next job, whichever is earlier. The company will help with outplacement too “We need to make sure that we preserve as much cash as possible to weather the storm if the business environment gets worse, or continues to be the same for the rest of the year or more,” said Goyal.

"A large number of restaurants have already shut down permanently, and we know that this is just the tip of the iceberg. I expect the number of restaurants to shrink by 25-40% over the next 6-12 months. What actually happens, for better or worse, is anybody’s guess," said Founder & CEO, Deepinder Goyal, in an email to its employees.

Goyal further added that starting June, the entire organisation will undertake a temporary reduction in pay. “Lower cuts are being proposed for people with lower salaries, and higher cuts (up to 50%) for people with higher salaries,” Goyal said in an official post. This temporary reduction in pay will also be eligible for 2X employee stock grants.

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