AI taking over jobs? Zomato fires 600 Employees.

Zomato, the prominent food delivery platform, has reportedly laid off nearly 600 customer support executives within a year of their hiring. These employees were part of the Zomato Associate Accelerator Program (ZAAP), initiated last year to fill customer support roles. The layoffs have primarily impacted staff in the company’s Gurugram and Hyderabad offices. 

The company attributes these layoffs to the increased adoption of artificial intelligence (AI) in its customer service operations. Recently, Zomato introduced ‘Nugget,’ an AI-powered customer support platform designed to optimize and automate customer interactions. According to the company, Nugget currently manages over 15 million customer interactions monthly across Zomato, Blinkit, and Hyperpure, resolving up to 80% of queries without human intervention. 

The affected employees were reportedly terminated without prior notice, receiving one month’s salary as compensation. Reasons cited for the layoffs include poor performance and punctuality. However, some former employees have expressed dissatisfaction, stating that the terminations were unexpected and lacked clear explanations. 

As of now, Zomato has not issued an official statement regarding these layoffs. The company’s move reflects a broader trend in the industry towards automation and AI integration to enhance efficiency and reduce operational costs.

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