Zomato Layoffs: The Impact of AI, Automation, and Business Slowdown on Jobs
A major reason behind these layoffs is Zomato’s increased adoption of artificial intelligence (AI) and automation in customer support. The company recently introduced ‘Nugget,’ an AI-powered support system
capable of handling over 15 million monthly customer interactions. With Nugget resolving up to 80% of queries without human intervention, the need for a large customer service team has significantly diminished.
https://digitalinternational.in/
Zomato, one of India’s leading food delivery platforms, recently laid off around 600 customer support employees from its Gurugram and Hyderabad offices. These
employees were part of the Zomato Associate Accelerator Program (ZAAP), an initiative designed to move employees into different company roles. However, many contracts were not signed, leaving the affected employees uncertain about their future
https://digitalinternational.in/
Reports suggest that many employees were asked to resign without formal notice, citing reasons such as performance and punctuality issues. However, employees have raised concerns about the lack of transparency and abrupt terminations.
The move reflects a growing trend across industries where AI and workforce are reshaping the business. While these technologies bring advancements and cost reductions, they also present significant
https://digitalinternational.in/
challenges for employees whose roles are being transformed. The layoffs at Zomato highlight the need for businesses to navigate workforce changes with better planning opportunities and clear communication.
DIGI MARCH STORE PRINT ON DEMAND
1. Introduction
Overview of Zomato’s recent layoffs
The growing influence of AI and automation in business operations
Broader context of workforce reductions in the tech and service sectors
2. Understanding the Layoffs
The scope: 600 employees affected
Key departments and locations impacted (Gurugram, Hyderabad)
The role of the Zomato Associate Accelerator Program (ZAAP)
3. The Role of AI and Automation
Introduction of ‘Nugget’ – Zomato’s AI-powered support system
How automation is reducing human intervention in customer service
The broader trend of AI replacing traditional jobs
4. Employe Reactions and Concerns
Reports of abrupt terminations and lack of notice
Employee concerns about job security and transparency
The impact on morale and future employment prospects
5. Perspective Why Companies auto
Cost-cutting measures and efficiency gains
The long-term vision for tech-driven companies
Potential benefits and drawbacks of AI-driven workforce transformation
6: The Work: Lessons from Zomato
The importance of reskilling and upskilling for employees
Ethical considerations for companies adopting AI-driven automation
How governments and industries can support displaced workers
7. Conclusion
Final thoughts on the balance between technology and employment
The need for responsible AI adoption in the corporate world
What other businesses can learn from Zomato’s experience
