Food delivery platform Zomato has carried out a major restructuring of its customer support operations, resulting in job losses for around 240 employees in Hyderabad.
The company has decided to discontinue its Customer Delight operations in Hyderabad and consolidate its remaining in-house customer support functions at a single location in Gurugram. The decision comes after a review of the company's customer support operating model and organisational requirements.
Hyderabad Customer Support Operations Shut Down
The restructuring has directly affected employees working in Zomato's Customer Delight division, which handles customer support and related services.
According to people familiar with the development, the Hyderabad operation is being discontinued as the company reorganises its support structure. The remaining in-house work will now be integrated with teams operating from Gurugram.
The company has indicated that the decision was linked to organisational restructuring and was not based on the individual performance or contribution of the affected employees.
Around 240 Employees Affected
Reports have placed the number of employees directly affected at around 240, although some reports have used a figure closer to 250.
The restructuring follows a recent review of the Customer Delight operating model and the company's future staffing requirements.
The job cuts have come as a significant blow to employees who were working in the Hyderabad customer support operation.
Customer Support Work Being Consolidated in Gurugram
Zomato is now moving towards operating its remaining in-house customer support functions from Gurugram.
According to people aware of the changes, the company wants its internal customer support teams to work more closely with product, technology, analytics and business functions.
The consolidation is expected to create a more integrated operating structure for the customer support work that continues to be handled internally.
More Work Shifted to External Partners
The restructuring comes after major changes in Zomato's customer support model over the past several months.
A larger share of customer support work has increasingly been handled through specialised external partners, reducing the amount of work managed directly by the company's in-house teams.
This shift has resulted in the decision to consolidate the remaining internal operations at a single location.
Affected Employees to Receive Four Months' Pay
The company has announced a financial support package for the employees affected by the restructuring.
According to reports, the affected workers will receive their August salary along with a package equivalent to four months' pay. The package includes contractual notice pay and a one-time ex-gratia payment.
This means employees will receive financial support beyond their final month's salary as they look for new employment opportunities.
Medical Insurance and Counselling Support
The support package is not limited to severance pay.
Reports say that medical insurance and access to counselling support for affected employees will continue until March 31, 2027.
The employees are also expected to receive assistance aimed at helping them find new job opportunities.
Company Devices May Also Be Transferred
According to reports on the restructuring package, affected employees may also be allowed to retain certain company-issued devices, including laptops and earphones, for personal use.
Outplacement assistance is also expected to be made available to help employees identify relevant employment opportunities after leaving the company.
Part of a Changing Customer Support Model
The latest restructuring highlights the major changes taking place across the customer service industry.
Companies are increasingly using external service providers, automation and technology to handle a growing share of customer interactions. Zomato's decision to reorganise its support operations reflects this broader shift in the way digital businesses manage customer service.
However, the transition has also resulted in significant uncertainty for employees whose roles have been affected by the changing operating model.
What Happens Next?
With the Hyderabad Customer Delight operation being discontinued, Zomato's remaining in-house customer support work will be concentrated in Gurugram.
The affected employees will receive the severance and support benefits announced as part of the restructuring package, while the company continues to operate with a revised customer support model.
Conclusion
Zomato's decision to shut down its Hyderabad Customer Delight operation has affected around 240 employees as part of a major restructuring of its customer support system.
The company is consolidating its remaining in-house support operations in Gurugram while a larger portion of customer support work is being managed through specialised external partners.
The affected employees are expected to receive their August salary along with four months' pay, including notice pay and an ex-gratia component. Medical insurance, counselling support and job-placement assistance are also part of the reported support package.