Zomato fired 600 employees: Jobs lost due to AI platform Nugget; Company is handling 1.5 crore customers every month with this
Food delivery company Zomato has fired about 600 customer support executives. The company had hired these employees last year under the Zomato Associate Accelerator Program (ZAAP) program. The employees have been fired after the launch of Artificial Intelligence (AI) platform Nugget.
Through this platform, the company is handling 1.5 crore customer queries every month. While launching Nugget, Zomato co-founder Deepinder Goyal had said, ‘This platform will make customer support easier and cheaper. There is no need for coding or developer team in this, it will just work through automation.
Company focusing on automation
Zomato is now also providing customer support through Nugget in its other companies like Blinkit and Hyperpure. After the arrival of Nugget, 80% of the queries are being resolved by AI. This reduced the time to solve customer problems by 20%. Compliance has also improved by 20%.
Share fell 8.46% in 1 month
Zomato’s share closed at Rs 203.35 today on April 1 with a rise of 0.82%. The company’s stock has given a negative return of 8.46% in the last one month. The stock has risen by 10.22% in the last one year. Zomato’s market capital is Rs 1.83 lakh crore.
Profit decreased by 57% on an annual basis
Zomato has made a profit of Rs 59 crore in the third quarter of FY 2024-25. However, it has come down by 57% on an annual basis. In the same quarter a year ago, the company had a consolidated profit of Rs 138 crore.
Zomato’s operational revenue grew 64% year-on-year to Rs 5,405 crore in the October-December quarter. In the third quarter of FY 2023-24, Zomato generated a revenue of Rs 3,288 crore. The amount received from selling goods and services is called revenue.
