Employee Allegations Indicate Serious Issues at Zomato; CEO Refutes Claims
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Synopsis
Zomato's CEO Deepinder Goyal strongly refuted claims of a deep crisis within the company, stating that such allegations are <b>utter nonsense</b>. An anonymous post sparked concerns about internal practices and a toxic work environment, which the company has denied.
Key Takeaways
- Zomato dismisses crisis claims as utter nonsense.
- Anonymous post raises concerns about workplace environment.
- CEO Goyal emphasizes freedom of choice for employees.
- Rakesh Ranjan's departure clarified as not a resignation.
- Leadership changes are routine for organizational improvement.
New Delhi, April 26 (NationPress) Following an anonymous post on social media from a purported employee, which alleged that Zomato (now referred to as Eternal) is grappling with a significant internal crisis, the online food delivery giant firmly rejected these assertions on Saturday, labeling them as utter nonsense.
A viral post on Reddit, allegedly authored by a Zomato employee, expressed concerns regarding the company's internal operations and competitive position. The post characterized the workplace as toxic, pointing to the sudden departure of Rakesh Ranjan, the former CEO of Zomato's food delivery segment (Zomato has since clarified that Ranjan has not stepped down from his role).
In a statement on the social media platform X, Zomato's CEO Deepinder Goyal refuted these allegations and reiterated the company's commitment to employee freedom of choice.
“All these claims are utter nonsense. We are neither losing market share, nor will we ever compel our employees to place orders on Zomato. We firmly advocate for freedom of choice,” stated the Zomato co-founder.
He further mentioned that it was somewhat embarrassing to address this issue but felt compelled to do so since many individuals reached out with their concerns.
“Thank you all for your concern... it is appreciated,” he concluded.
The anonymous post suggested that Zomato was losing traction to competitors like Zepto Cafe and Swiggy.
According to the whistleblower, employees were allegedly expected to make a minimum of seven orders monthly on Zomato, with oversight mechanisms in place. The post indicated that one of the primary challenges in the industry relates to how delivery partners are treated.
Earlier this week, the company issued a statement following a media report that claimed Ranjan was resigning as part of a leadership overhaul, with Goyal anticipated to assume interim responsibilities.
Zomato’s parent company, Eternal Group, confirmed that Ranjan has not submitted any resignation and remains an integral part of the leadership team.
The online food platform further stated that leadership transitions are a standard aspect of their initiatives to enhance organizational efficiency.
