Zomato cuts down 13% work force and implements salary deductions

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The COVID-19 period has been very difficult for the businesses to survive, especially the ones who have to move from one place to another on a regular basis. We just saw Uber cut down a significant number of employees because of the pressure they were under and now, Zomato, who acquired Uber Eats just months ago, are following the suit of the American cab-service organization.

Zomato announced that a major chunk of the employees were released from their job as the organization was not in a position to withstand horrible position they are in.  “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,” Zomato announced.

“Starting June, I am proposing a temporary reduction in pay for the entire organisation. Lower cuts are being proposed for people with lower salaries, and higher cuts (up to 50 percent) for people with higher salaries,” he added. It hasn’t really come as a surprise and if the lockdown manages to extend further, the times could be ever more troublesome for companies like these.

Things could worsen in the next 12 months

With the pandemic inducing a fear among people, not many are preferring to eat outside food. So it is being speculated that even after the lockdown is taken off, things will be very difficult for Zomato in the next 12 months as they’re expecting a lot of restaurants to shrink further. However, they also announced that the affected employees of Zomato will continue to receive support from the company in four areas: financial, outplacement support, healthcare, and equity.

Not just this, but the organization will also play a role in helping these ousted employees get jobs elsewhere. It will be interesting to see if this outplacement service will be of any use, but they’re expecting to revive the jobs of most of these employees in one way or the other.

CEO Deepinder Goyal reckons there will be no getting back to normal and businesses will have to adapt to the new normal in the months to come. Things are going to get incredibly difficult for a while, but he expects some sort of a change in the longer run which will bring them back into contention.