Online food delivery app Zomato announces slashing 13 percent of jobs

Company's co-founder and CEO Deepinder Goyal tweeted: "We remain committed to our mission of better food for more people, and are determined to continue building Zomato with renewed love and passion for our world and our community."

"We have advised 13% of our workforce to start looking for jobs outside of Zomato, while we support them financially and emotionally for the next 6 months," he said.

In his e-mail sent to all employees, he said the company's business has been severely affected by the COVID lockdowns.

Speaking on salary cut of its employees, he said: "Starting June, I am proposing a temporary reduction in pay for the entire organisation. Lower cuts are being proposed for people with lower salaries, and higher cuts (up to 50%) for people with higher salaries."

"This temporary reduction in pay will also be eligible for 2x ESOP grants just like the earlier voluntary cuts," he said.

He said large number of restaurants have shut down permanently and this is the tip of the iceberg.

"A large number of restaurants have already shut down permanently, and we know that this is just the tip of the iceberg. I expect the number of restaurants to shrink by 25-40% over the next 6-12 months. What actually happens, for better or worse, is anybody’s guess," he said.