Zomato to Axe 13% of its Employees; Slash upto 50% Salaries

CEO Deepinder Goyal has also proposed a "temporary pay cut" for Zomato employees starting June.
Zomato to Axe 13% of its Employees; Slash upto 50% Salaries

Guwahati:

Food ordering service Zomato is all set to axe up to 13 percent jobs and cut salaries by up to half for the rest of its employees amid the ongoing coronavirus-triggered lockdown that has brought its operations to a standstill across the country. This was announced by Deepinder Goyal, the Founder and CEO of the company, in a letter that he dashed off to his employees.

The people affected by the layoffs, however, will get half of their salaries along with health insurance for the next six months or till they find their next job, whichever is earlier, Deepinder said in his note, adding that the company is also seeking to cut down on its office spaces.

Goyal also proposed a "temporary pay cut" for Zomato employees. "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%) for people with higher salaries", he wrote, adding that the cuts will be discontinued once the situation returns to normal, which he expects to be in 6 months.

The Zomato founder also announced that the business of the company has been severely affected by the COVID lockdowns. "A large number of restaurants have already shut down permanently, and we know that this is just the tip of the iceberg. I expect the number of restaurants to shrink by 25-40% over the next 6-12 months", Deepinder informed his staff in the letter.

Terming the COVID-19 as a "black swan event for the world economy", Goyal said that the company has to preserve as much cash as possible" as the worst might still be around the corner.

Meanwhile, the nation is preparing for the fourth phase of the lockdown which was hinted at the Prime Minister Narendra Modi earlier this month. Modi, however, said that the states have to submit recommendations on the basis of which the mantra for the lockdown 4.0 shall be formulated.

How the Staff will know they have been Fired:

For everyone who is impacted – they will get invites for a zoom call with the leadership team within the next 24 hours. These invites will be sent to you via email and Dingtalk. For everyone who is not impacted – an email from hr@zomato.com in the next 6 hours should tell them that their jobs are here to stay. 

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