Zomato lays off over 600 employees, up to 50% pay cut for rest

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Food delivery major Zomato has on Friday announced that it will lay off around 13 per cent of its employees besides a 50 per cent cut in pay across its workforce for six months starting June.

Food delivery major Zomato has on Friday announced that it will lay off around 13 per cent of its employees besides a 50 per cent cut in pay across its workforce for six months starting June.

In an internal note circulated by Founder & CEO of Zomato this morning, Deepinder Goyal said that the coronavirus pandemic had severely affected the company’s business in the last two months. The hotels and restaurants across the country were forced to shut their doors to mitigate the spread.

“Multiple aspects of the business have changed dramatically over the last couple of months and many of these changes are expected to be permanent. While the management continues to build a more focused Zomato, it does not foresee having enough work for its employees, the circular said.  

All the Zomato employees who no longer have any work at the company, will get 50% salary for the next six months. Those employees are encouraged to find new jobs outside the company during this period, a Livemint report quoting Goyal said.

Employees who are not in direct payroll, will receive two months of severance (vs. 15 days of contractual obligation), the company said. Zomato employees will be allowed to keep their laptops and phones issued by the company.

The company is also planning to "make partial or full work from home a permanent feature" for employees. For sales teams, it will provide full time work from home as office presence is only required for large team meetings, gatherings, performance reviews, the company said (with inputs from agencies).

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