Zomato Faces Turmoil with COO's Resignation and Layoffs

 

 

 

Food delivery giant Zomato is going through a significant transition as it prepares to rebrand itself as Eternal Limited starting April 9, although its popular food delivery app will continue to be known as Zomato. Amid these changes, the company has been hit with a wave of uncertainty following the resignation of its Chief Operating Officer (COO), Rinshul Chandra. His departure, after more than a decade of service, adds to the ongoing shake-up at the company’s top level.

The COO's resignation comes on the heels of massive Zomato layoffs, where around 600 employees, mainly from customer service roles, have been let go. This Zomato workforce reduction reflects broader challenges the company is facing, including a decline in food delivery volumes and continued financial stress in Blinkit, its quick-commerce vertical.

To manage costs, Zomato is now leaning heavily on AI tools to handle customer support functions, reducing the need for human involvement. This shift marks a clear strategic pivot towards automation and efficiency—one that has already cost hundreds of jobs.

While Zomato hasn't officially commented in detail on the reasons behind the COO resignation or the exact impact of these layoffs, the moves indicate a period of major restructuring and reevaluation of long-term goals. As Zomato rebrands and streamlines its operations, the spotlight will be on how the company adapts to a changing market, maintains customer trust, and remains competitive amidst evolving consumer behavior and rising competition from other food delivery and quick-commerce platforms.

The coming months will be crucial in determining whether these tough decisions will stabilize Zomato’s business or signal deeper challenges ahead.