Zomato lays off 250 employees, shuts Hyderabad customer support centre
Synopsis
Key Takeaways
Zomato has reportedly laid off around 250 employees as part of a restructuring of its customer support operations, the company confirmed on 31 August. The cuts follow an internal review of the food delivery platform's Customer Delight operating model and come amid a broader shift toward outsourcing support functions to external partners.
What Changed in the Operating Model
The company has decided to discontinue its Customer Delight operations in Hyderabad, a move that affects approximately 240 employees at that location. The remaining in-house operations will be consolidated into a single integrated team based in Gurgaon, where they will work in closer coordination with Zomato's product, technology, analytics, and business units.
Zomato was explicit that the decision was not performance-related. 'We have decided to reorganise our operations and rationalise the size of the team,' the company said in a statement. Over the past six months, a larger share of customer support workload has been transferred to specialised external partners, making the Hyderabad centre redundant under the new model.
Severance and Support for Affected Employees
Affected employees will receive their August salary along with four months of severance pay, comprising contractual notice pay and a one-time ex gratia payment. Medical insurance and counselling support will be extended until 31 March 2027. Employees will also be permitted to retain company-issued laptops and earphones for personal use, and Zomato has committed to providing dedicated outplacement assistance to help them secure new roles.
Broader Context: A Leaner, Tech-Driven Support Stack
This is not the first time Zomato has restructured headcount in response to operational shifts. The company has been progressively automating and outsourcing customer-facing functions, a trend visible across India's gig-economy platforms as they scale. Consolidating support in Gurgaon — close to the company's core technology and product teams — signals a move toward embedding customer operations into the product development cycle rather than running them as a standalone function.
Notably, the restructuring comes on the same day Zomato announced a zero-tolerance policy on the sale of analogue dairy dishes by restaurants listed on its platform. The company said it will immediately delist any dish that partner restaurants declare as containing analogue dairy, following action by food regulator FSSAI against several restaurants.
What Happens Next
The Gurgaon-based consolidated team is expected to handle all remaining in-house customer support functions going forward. Industry observers will watch whether the outsourcing model delivers the efficiency gains Zomato is projecting, or whether service quality metrics come under pressure — a risk that has historically accompanied large-scale support outsourcing in consumer tech companies.