Zomato Food Delivery Services sacked around 600 customer support agents enrolled in the Zomato Associate Accelerator Programme (ZAAP). Artificial intelligence tools now drive the majority of workplace efficiency at the company, which led to this change implementation. The reduction of Zomato employees stems from its ongoing efforts to boost customer service quality and reduce expenses during fierce competition with quick commerce businesses and food delivery operators.
The AI Technology merger by Zomato into customer support analysis constitutes the primary factor leading to workforce reductions. The invention of Nugget Zomato enabled the platform to manage independently a majority of 80 percent of customer queries following its launch.
Nugget functions as a critical part of Zomato's operation streamlining process because it decreases the necessity of human customer service involvement. Sources with inside information revealed that Nugget participated in evaluating ZAAP employee performances, which resulted in the laying off workforce members when Nugget demonstrated its capability to perform redundant tasks.
ZAAP started its operation last year to prepare new Zomato employees for customer service positions. Recruits working at Zomato's Gurugram and Hyderabad offices received Rs 4.5 lakh annually during their time there. The rising application of AI in customer service operations has decreased employment demands for human support staff. Zomato's customer support team projects another decrease in staff size, so their upcoming member count will be between 400 and 500 employees.
Zomato requires these measures to lead its food delivery rivalry against Swiggy and its fight against Blinkit's fast-velocity sector rivals. Zomato invested heavily in building its dark store network because this dual enhancement of delivery speed and market control was essential to them. The organizational growth necessitated substantial financial commitments from Zomato, forcing the company to implement improved operational management and workplace performance.
As Zomato cuts its workforce, it continues enhancing its technological capabilities to improve its business competition. Nugget and other Artificial Intelligence tools enable Zomato to reduce costs while improving service speed so the company remains profitable despite intensifying market competition. Zomato will make more operational adjustments to comply with market conditions while continuing its operation simplification efforts.