Zomato has cut approximately 250 jobs and is shutting its customer support centre in Hyderabad, a restructuring that the company said is driven by changes in its customer service model rather than employee performance.

The food delivery firm has decided to discontinue its Customer Delight operations in Hyderabad and consolidate remaining in-house operations at a single location in Gurgaon, according to an NDTV Profit report. The report said the move affects around 240 employees in Hyderabad.

Zomato told employees about the workforce reduction on August 31, according to an Economic Times report. The company said the decision follows a review of its customer delight operating model.

Restructuring, not cost-cutting

Zomato said the layoffs are part of a restructuring of its customer support plan rather than a cost-cutting exercise. "We have decided to reorganise our operations and rationalise the size of the team," the company said.

The company has over the past six months been shifting a larger share of customer-care work to specialised external partners. The remaining in-house operations will be consolidated into an integrated team in Gurgaon, where they can work more closely with the company's product, technology, analytics and business functions.

Employee support package

Affected employees will receive their August salary along with four months of severance pay, which includes contractual notice pay and a one-time ex gratia payment. Zomato will also extend medical insurance and counselling support until March 31, 2027.

In addition, employees will be allowed to retain their company-issued laptops and earphones for personal use. Zomato will also provide dedicated outplacement assistance to help affected staff secure new roles.

Zomato's customer support operations have undergone significant changes over the past six months as the company relies more on external partners and a smaller in-house team.