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Zomato is cutting 240 jobs just before India's festive season: Why now?

Zomato is shutting its Hyderabad Customer Delight operations as more support work moves to external partners and the remaining in-house team is consolidated in Gurugram

Zomato layoffs

Zomato is restructuring its customer support operations, affecting around 240 jobs in Hyderabad.

AFP via Getty Images
  • Around 240 employees in Hyderabad are affected by the move.
  • Zomato has shifted more customer support work to specialised external partners.
  • Affected employees will receive four months' pay, along with insurance and transition support.

Zomato is cutting around 240 jobs in Hyderabad, but the layoffs are part of a wider change in how the food delivery company handles customer support.

The company is shutting its Hyderabad-based Customer Delight operations and consolidating the remaining in-house support team in Gurugram. More customer support work is also being handled by specialised external partners, according to an industry executive familiar with the development.


The shift means Zomato will have a smaller in-house support operation, with the remaining team working more closely with its product, technology, analytics and business functions.

The decision follows a recent review of Zomato's Customer Delight operating model and organisational requirements. The affected employees have been told that the move is not a reflection of their performance, commitment or contribution.

Why Zomato is changing its support model

Zomato's customer support operation has changed significantly over the past six months, with the company relying more heavily on external partners for specialised work.

The remaining in-house operations are now being brought together in Gurugram, where Zomato says the teams can work more closely with the rest of the business.

For Zomato, this represents a change in the structure of customer support rather than simply a reduction in headcount. For the Hyderabad employees, however, the restructuring means finding new jobs at a time when the wider employment market remains competitive.

The timing also raises questions about customer service during India's festive season, when food delivery demand can increase and platforms typically deal with more orders and customer queries. It remains unclear how the new mix of in-house and external support will affect Zomato's ability to handle that additional pressure.

Workers will get a four-month pay package

Eternal, Zomato's parent company, is offering the affected employees their August salary along with four months' pay, including contractual notice pay and a one-time ex gratia payment.

Their medical insurance will continue, while access to counselling support will remain available until March 31, 2027.

The company will also transfer ownership of their work-issued laptops and earphones to them for personal use. Dedicated outplacement assistance will be provided to help workers identify other employment opportunities.

The package gives affected employees some financial and practical support while they look for their next roles. However, the real test for many will be how quickly they can find new employment after leaving Zomato.

The restructuring comes alongside another change at the company. Zomato has introduced a zero-tolerance policy on restaurants listing dishes containing analogue dairy products, including analogue cheese and paneer. Non-compliant restaurants can be removed from the platform.

Taken together, the moves show a company tightening parts of its operations while changing how it manages both customer support and restaurant standards.

For the 240 employees in Hyderabad, though, the business transformation has a much more immediate consequence: their roles are being removed as Zomato reshapes its customer support operation.

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