FOOD DELIVERY TO GET AFFECTED: TOP BRAND ANNOUNCES 13% LAY OFF, PAY CUT FOR OTHERS! - CORONA EFFECT?

Food delivery platform, Zomato is set to layoff around 520 employees which is almost 13% of its workforce and has also temporarily cut down the salary of rest. As per media reports, Zomato’s founder and CEO Deepinder Goyal fired employees and stated the reasons in an internal email on Friday. The decision was taken to curb the spread of the pandemic. 

Employees who were fired will receive half of their salaries along with health insurance till they find another job or for the next six months depending upon whichever is convenient.

Executives who have been employed across marketing, events and content and other departments are likely to be the most affected ones due to the layoff. 

“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. What actually happens, for better or worse, is anybody’s guess," Goyal said.

The company has decided to make work- from-home as a partial or permanent policy. According to Economic Times’ report, after payroll, the Gurgaon-headquartered firm's second highest recurring expense is on real estate and it runs more than 150 offices across the world. 

Last month, rival firm Swiggy decided to let go of its staff from the private brand kitchen team and discontinued operations at a few centres.