Zomato is shutting down its customer support operation in Hyderabad, affecting around 240 employees as the food delivery platform changes the way it handles customer queries. The move comes after a review of its Customer Delight operating model and current organisational needs.
The company says its customer support structure has changed considerably over the past six months. A larger share of support work is now being handled by specialised external partners, reducing the need for the same level of in-house staffing.
Zomato says it has decided to reorganise operations and reduce the size of the affected team. “We have decided to reorganise our operations and rationalise the size of the team,” the company says.
The remaining in-house customer support operation is being consolidated in Gurgaon. The move is intended to bring the support team closer to product, technology, analytics and business functions, which are already concentrated at the location.
Hyderabad Team Faces Exit
The company says the Hyderabad closure affects “approximately 240 colleagues”. It also makes clear that the decision is not linked to the employees' individual performance.
“It is not a reflection of their performance, commitment or contribution,” Zomato says while announcing the restructuring. The statement indicates that the job losses are linked to a change in the operating model rather than a performance-based reduction.
The restructuring is currently understood to be limited to the Hyderabad customer support operation. There is no indication of similar changes being planned for other teams as part of this move.
Zomato says affected employees will receive their August salary along with four months of pay. This includes contractual notice pay and a one-time ex gratia payment.
Medical insurance and counselling support will remain available to the affected employees until March 31, 2027. The company will also allow employees to retain their company-issued laptops and earphones.
Job Search Assistance
Zomato is also providing outplacement assistance to help affected employees search for new opportunities. The support is intended to make the transition easier for people leaving the company following the closure.
The latest decision is different from the workforce reduction reported in April 2025. At that time, around 500 junior employees were reportedly laid off from the Zomato Associate Accelerator Programme, known as ZAAP.
ZAAP had recruited around 1,500 people, mainly for customer service positions. The programme also offered employees opportunities to move into functions such as operations, marketing, sales and supply chain.
The earlier job cuts were reported to be linked to employee performance. The latest Hyderabad reduction is different because Zomato directly links it to changes in its customer support model and greater use of external service providers.
Zomato Layoff Reflects Industry Shift
Job losses are becoming a recurring issue across parts of the Indian food-tech and quick-commerce sector as companies focus more closely on costs, productivity and profitability. After years of rapid expansion, food delivery and quick-commerce businesses are increasingly looking at automation, outsourcing and tighter workforce planning.
Customer support is one area where companies can reduce fixed costs by using specialised external agencies and technology-based systems. At the same time, growing use of chatbots, automated refunds, order tracking and other digital tools can reduce the volume of queries that require direct employee intervention.
For food-tech startups, the shift can help lower operating expenses, but it can also lead to fewer entry-level jobs. Companies are now under greater pressure to show a clearer path towards sustainable profitability after years of prioritising customer acquisition and market expansion.
Eternal Food Business
Zomato operates as the food delivery business of Eternal, which was formerly known as Zomato Limited. The parent company also runs Blinkit, its quick-commerce business, Hyperpure, which supplies restaurants, and District, its going-out platform.
The restructuring comes as the wider group continues to manage multiple businesses with different growth and profitability requirements. For Zomato, the focus on customer support outsourcing shows how operational functions are also being reviewed as the business matures.
Hyderabad closure indicates a broader change in the food delivery industry. Companies that once expanded teams rapidly to support growing order volumes are now looking for ways to handle larger operations with fewer fixed costs.
For affected employees, the immediate focus will be on the financial and career support being offered by Zomato. For the company, the key question will be whether the new mix of in-house teams, external partners and technology can maintain customer service quality while improving operational efficiency.
