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Zomato to close Hyderabad support hub, affecting about 250 employees
Our read
Zomato’s Hyderabad closure is likely the first visible step in a broader shift toward centralized, vendor-led support, lifting cost efficiency but making service quality a more consequential competitive risk.
For operators
Zomato’s Hyderabad hub closure shifts customer support toward Gurgaon and external partners, making vendor oversight and service-quality controls critical during the transition.
Watch
Changes in app-store reviews, social-media complaint volume and reported customer-support response times.
Ask next
What else has Zomato done in the last three months?The report,
Zomato is shutting Hyderabad customer-support operations and consolidating in Gurgaon as more support shifts to external partners. About 250 employees will receive August salary, four months’ pay, insurance and counselling through March 2027, equipment ownership and outplacement assistance.
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Reported figures
From the report. Source details below
| Medical insurance and counselling access until March 31, | 2027 |
|---|---|
| Around 500 junior-level positions cut in April | 2025 |
Also in the report
- Four months' pay including contractual notice pay and one-time ex-gratia
Why it matters to operators
Zomato’s deeper reliance on external support partners highlights potential opportunities in customer-service outsourcing, automation, and vendor-consolidation capabilities.
What to watch next
- Order frequency, cancellation rates, refunds and customer retention in Hyderabad and other major markets.
- New outsourcing/vendor contracts, job postings in Gurgaon or further reductions in city support teams.
- Management commentary on fixed-cost reduction, adjusted EBITDA margins and employee-cost trends.
- Labor complaints, local political attention or litigation related to the Hyderabad closure.
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- Increase vendor-managed support capacity with tighter service-level agreements and escalation controls.
- Concentrate complex, high-value and fraud-related cases in Gurgaon while automating routine customer contacts.
- Track complaint rates, refund turnaround, cancellation patterns and repeat-order cohorts during the transition.
- Use severance and extended insurance support to limit reputational damage and employee-relations backlash.
- Assess further consolidation opportunities across corporate support, trust-and-safety and merchant-service workflows.
The counter-case
The case against this reading — not reported by the source.
The move may be less about strategic efficiency than cost cutting, with outsourcing risking weaker service quality, slower issue resolution, and reduced control over customer experience. Consolidating support in Gurgaon could create operational concentration risk and undermine local-language or regional responsiveness. Severance support softens the immediate impact but does not address potential morale damage among remaining employees or reputational backlash from job losses.
The source
Published
First seen