Zomato's Strategic Shift: Layoffs and Consolidation in Customer Support Operations

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INTRODUCTION

In 2026, Zomato's restructuring underscores its growing reliance on external partners for customer support, following earlier job cuts amid increased automation. The company has laid off around 240 employees as it shuts down its customer support operations in Hyderabad.

DETAILS OF THE RESTRUCTURING

Zomato's decision to lay off employees and consolidate its customer support operations in Gurugram follows a comprehensive review of its customer-support operating model and organizational requirements. Over the past six months, Zomato has increasingly outsourced its customer support work to specialized external partners. The consolidation in Gurugram aims to bring the team closer to Zomato’s product, technology, analytics, and business functions.

COMPENSATION FOR AFFECTED EMPLOYEES

Affected employees will receive their salary for August along with four months’ pay, comprising contractual notice pay and a one-time ex-gratia payment. Their medical insurance and access to counseling services will continue until March 31, 2027. Zomato will also transfer ownership of the company-issued laptops and earphones used by the employees to them for personal use. The company is also expected to provide outplacement assistance to help them find other job opportunities.

CONTEXT OF FOOD SAFETY SCRUTINY

The restructuring comes at a time when Zomato and other food delivery and quick commerce platforms are facing greater scrutiny over food quality, storage, and hygiene standards. Zomato recently announced a zero-tolerance policy on dishes containing analogue dairy products, including analogue paneer. The platform has removed dishes that restaurant partners had declared as containing analogue dairy and warned that non-compliant restaurants could be delisted.

MARKET COMPETITION

Competition is intensifying across both food delivery and quick commerce. Zomato and Swiggy continue to dominate food delivery, but Rapido is expanding Ownly, while Flipkart is preparing to enter the segment in Bengaluru with a lower commission model for restaurants. In quick commerce, Eternal-owned Blinkit competes with Zepto, Swiggy Instamart, Flipkart Minutes, and Amazon Now, forcing platforms to balance growth and market-share gains with cost control and regulatory compliance.

FAQ

**Q: What is the reason for Zomato's restructuring of its customer support operations? A: Zomato's restructuring follows a review of its customer-support model and organizational requirements, with a growing reliance on external partners.

**Q: What compensation will affected employees receive? A: Affected employees will receive their salary for August along with four months’ pay, comprising contractual notice pay and a one-time ex-gratia payment.

**Q: How is Zomato addressing food safety concerns? A: Zomato has announced a zero-tolerance policy on dishes containing analogue dairy products and has warned non-compliant restaurants of potential delisting.

CONCLUSION

Zomato's restructuring highlights its strategic shift towards greater reliance on external partners for customer support, amidst ongoing challenges in food safety and intensifying market competition.

CALL-TO-ACTION

For more insights into Zomato’s operations and market trends, visit blogy.in.