Zomato to lay off 240 staff as it shuts Hyderabad customer-support operations

Our read

Zomato’s Hyderabad shutdown is likely the first visible step in a broader shift toward centralized, outsourced and automated support, improving costs but creating a meaningful execution risk around customer experience.

For operators

Zomato’s Hyderabad support closure and added outsourcing signal a leaner service model that will require tight partner oversight to protect customer experience.

Watch

Changes in customer-support response times, complaint volumes, refund rates and app-store ratings after the transition.

Ask next

What else has Zomato done in the last three months?

The report,

Zomato is shutting its Hyderabad customer-support operation and laying off about 240 staff, consolidating remaining in-house support in Gurugram while shifting more work to external partners. Affected workers receive August salary, four months’ pay, extended insurance and outplacement support.

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Reported figures

From the report. Source details below

Benefits continue until March 31, 2027

Also in the report

  • Around 250 employees cited in an earlier report
  • Around 600 customer-support employees laid off in April last year
  • 86 facilities inspected in Maharashtra
  • 14 food-establishment licences suspended
  • 60 improvement notices issued

Why it matters to operators

Zomato’s move underscores the strategic value of scalable outsourced-support capabilities and potential partnership opportunities with customer-service platform providers.

What to watch next

  • Evidence of rising customer churn, lower order frequency or increased promotional spending relative to Swiggy.
  • Management commentary on adjusted EBITDA, employee costs and outsourcing expenses in upcoming results.
  • Further layoffs, office closures or hiring freezes in operations, technology or corporate functions.
  • Vendor service-level failures, data-security incidents or public backlash from affected employees.

Likely next moves

Our read of what comes next — analysis, not reported by the source.

  • Shift additional customer-support volumes to outsourced partners with tighter cost-per-contact targets.
  • Expand AI-led self-service, chat automation and automated refund workflows to reduce human-agent demand.
  • Concentrate retained escalation, fraud, merchant and high-value customer teams in Gurugram.
  • Review other back-office locations and overlapping corporate roles for consolidation opportunities.
  • Use severance and transition support to limit reputational fallout and labor-relations risk.

The counter-case

The case against this reading — not reported by the source.

The layoff is modest relative to Zomato’s overall workforce and may reflect routine support-function optimization rather than a deterioration in demand or unit economics. Outsourcing customer service can lower fixed costs, but it also risks weaker resolution quality, slower response times and reputational damage if third-party partners are poorly managed. Consolidating support in Gurugram may also create operational concentration risk.

The source

Source Read the source at Inc42 Published

First seen