India’s one of the leading food delivery service company, Zomato has decided to fire 13% of its workforce at the urge of lockdown. The aim is to reduce the operating costs.
The markets of food delivery services have drastically gone down. This step is foreseen to tame down the overall economic impact on the comapny.
Zomato CEO Deepinder Goyal said, ” We owe all our colleagues challenging work environment, but we won’t be able to offer that tu about 13% of workforce going forward.”
The number of restaurants is expected to reduce by 40% in the near future. This will again, effect the company at large.
However, Goyal has promise the employees to support them financially even after firing them. Lockdown needs them to be supported more than the company. Therefore, Goyal has planned to give 50% of the salaries to all the fire workers till 6 months or until the employee finds a new job.
Not only the salary but also the health insurance is taken up by Goyal and the company.
They will also be a temporary cut in the pay of employees from June which will be up to 50%. Goyal said in his mail, “We expect these cuts to be discontinued as soon as the economy starts getting back on track. I foresee (and hope) this to be around six months from now,’’
It is reported that Zomato’s competition, Swiggy also fired 1000 employees lately.
Both the organisations are adopting different strategies to overcome the loss in the business.
Both the food delivering apps have started their groceries delivery line as well. Zomato is delivering groceries in 185 Indian cities.