- May 16, 2020 / 3 min readGoyal further added that starting June, the entire organisation will undertake a temporary reduction in pay.
Online ordering and food delivery major Zomato has planned to layoff 520 people or 13% of its workforce
The Gurgaon-based player has also undertake up to a 50% pay cut for the remainder of the organisation as Covid-19 has severely impacted its business.
Instead of a direct severance package, the people affected by the layoffs 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. The company will help with outplacement.
This is the second time Zomato has laid off staff in the last one year. In September 2019, the company had sacked 540 employees from its customer support team or 10% of its workforce at the time.
"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," said Deepinder Goyal, CEO, Zomato in an email addressed to its employees.
Goyal further added that starting June, the entire organisation will undertake a temporary reduction in pay. "Lower cuts are being proposed for people with lower salaries, and higher cuts (up to 50%) for people with higher salaries," Goyal said in an official post. This temporary reduction in pay will also be eligible for 2X employee stock grants.
"We need to make sure that we preserve as much cash as possible to weather the storm if the business environment gets worse, or continues to be the same for the rest of the year or more," he added.
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