Zomato has shut down its Hyderabad customer support center. The company laid off about 250 employees on Monday, August 31. The food delivery giant is moving to a more centralized and outsourced support model. The Economic Times first reported the development.
Six Months of Restructuring Lead to Job Cuts
Zomato has been revamping its support operations for six months. The company is outsourcing most support work to external service providers. In-house operations will now consolidate at Zomato’s Gurugram headquarters. This brings support closer to product, technology, analytics and business teams. The goal is more centralized and effective management of customer service.
Severance Package Includes Four Months Extra Pay
Affected employees get full August salary plus four months extra pay. This includes contractual notice period compensation. A one-time ex-gratia payment is also part of the package. Medical insurance and counseling will remain active until March 31, 2027. Employees were briefed about the decision on Monday.
Not Zomato’s First Layoff Round
This is not Zomato’s first workforce reduction. The company cut about 500 junior-level positions in April 2025. Consumer internet firms are increasingly adopting outsourcing and automation for support roles. The trend reflects an industry-wide shift toward cost efficiency. Companies need fewer in-house staff as AI systems improve.
AI and Automation Reshape Support Industry
Artificial intelligence is reducing the need for large in-house support teams. Automated support systems handle more customer queries than ever before. Zomato’s move aligns with this broader industry transformation. The impact on service quality and customer experience remains to be seen and will be closely watched.
Founder Deepinder Goyal’s New Venture
Zomato founder Deepinder Goyal is working on a new wearable device called Temple. The latest version is less than half the size of the earlier prototype. Goyal claims it will be the smallest and most powerful wearable by volume. Pre-orders for the limited launch edition start soon. Shipping is expected before the end of 2026.
