The food delivery tech company, Zomato, has reportedly faced huge losses during the previous financial year and is continuing to do so. The much-loved and widely used food ordering app suddenly faced a severe dip in profits and use. This dip was unexpected and has taken the company by surprise. In the Quarter three financial earnings report, the company stated that they are making attempts to remedy the situation and despite the losses they still hope to reach their profitable goals.
Zomato Pulls Out Of 225 Cities
In an effort to cut costs and remedy the losses that the company has incurred during the previous financial year, Zomato announced in its Q3 report that it is exiting and ceasing all operations in a total of 225 cities. The company took the decision to exit the cities after it reported a loss of ₹346 crores. According to the report, the performances in these cities were not very hopeful or promising. Hence, the food tech company decided to cease operations in these cities.
However, the report did not mention exactly which cities have been impacted by this move. Recently, Zomato also laid off a huge number of its staff in order to cut costs. However, the CEO of Zomato, Deepinder Goyal recently announced that the company was hiring again across 800 different positions.
Also Read: Zomato Has Re-Launched Its Gold Loyalty Programme. Party Time!
Gold Membership & LinkedIn Post
In an attempt to drum up business, Zomato resumed its Gold Membership subscription. It is reported that the company already has over 9 lakh subscribers for the membership. It is hoped that the resumption of this service will drive up the use and loyalty of the app.
The CEO recently took to LinkedIn and announced that the positions of Chief of Staff to CEO, Growth Manager, Generalist, Software Development Engineer, and Product Owner are open for hire. However, one major requirement he posted for these jobs was that there will be absolutely no work-life balance and that these employees will have to work 24×7 for the company.
This requirement, understandably, faced a lot of backlash on the professional networking website. Many criticised the CEO for this harsh and toxic requirement.
Also Read: Bid Adieu To Zomato’s 10-Minute Delivery! The CEO Reacts To Zomato Instant Struggling To Stay Afloat
Have you been using Zomato lately? What is your go-to order? Tell us in the comments below!
Cover Image Credits: Zomato/Website