Zomato expands business but still reduces workforce in these testing times

In a recent blog, Zomato showed us an email that they sent to all the employees. The blog laid out various plans for a bright future, but the next day will be a scary start for many of the employees.

A new beginning for Zomato

Zomato has launched some new ventures; in and outside India. These include:

- Expansion in 185 cities in India

- Venturing into the Grocery business

- New delivery-business launch in Turkey

- Takeaway business in Australia, New Zealand and Portugal

- Future launching in the UAE and Lebanon

Further, Zomato will also launch Contactless Dining. The idea is an innovation in the restaurant industry. For this, the food-delivery giant has already signed up over 25,000 restaurants in the world.

A dark day for the employees

Many of the employees will be jobless by tomorrow. We don't know the exact number still, but it is estimated that Zomato will lay off 13% of its workforce. The company said that it was a black swan event for the entire world.

Deepinder, CEO of Zomato, said:

Multiple aspects of our business have changed dramatically over the last couple of months and many of these changes are expected to be permanent. While we continue to build a more focused Zomato, we do not foresee having enough work for all our employees. We owe all our colleagues a challenging work environment, but we won’t be able to offer that to 13% of our workforce going forward.

Read More: Black Swan Effect: 9 Worst to Best affected Tech Businesses due to Coronavirus Pandemic in India

They are doing it over a Zoom call, so if you are an employee, a Zoom link is a bad news for you today. In retrospect, Zomato will offer 50% salary to these people for 6 months, assistance in finding new jobs and keep the vested ESOPs. The ex-employees will also get to keep their health insurances.

The blow cannot be said to have reduced with these measures, but it is more human.