Zomato is shutting down its Customer Delight operations in Hyderabad, resulting in approximately 240-250 employees losing their jobs as the food-delivery company restructures its customer-support operations. The decision was communicated to employees on August 31 and comes after Zomato significantly changed its customer-support model over the past six months, with more work being handled by specialized external partners.
The company said the remaining in-house customer-support work will be consolidated at its Gurugram headquarters, bringing the team closer to Zomato’s product, technology, analytics and business functions. Zomato described the restructuring as a review of its Customer Delight operating model and organizational requirements rather than a reflection of the affected employees’ performance.
Zomato To Shut Hyderabad Customer Support Operations
Zomato’s latest workforce reduction affects roughly 240 employees in Hyderabad, while reports have broadly described the job cuts as around 250.
The company is not eliminating its entire in-house customer-support function. Instead, it is closing the Hyderabad operation and consolidating the remaining in-house support team in Gurugram.
The move represents a shift toward a more centralized and partially outsourced customer-service structure.
Zomato Hyderabad Layoffs At A Glance
| Particular | Details |
|---|---|
| Company | Zomato |
| Parent company | Eternal Ltd |
| Location affected | Hyderabad |
| Function | Customer Delight / customer support |
| Employees affected | ~240-250 |
| Decision announced | August 31, 2026 |
| Remaining in-house operation | Gurugram |
| External support | Expanded over past six months |
| Primary reason | Customer-support operating model restructuring |
| Severance | Four months’ pay, including notice and ex gratia |
| Insurance/counselling | Continued until March 31, 2027 |
Zomato said approximately 240 colleagues in Hyderabad were affected and emphasized that the decision was not related to their performance, commitment or contribution.
Why Is Zomato Cutting 250 Jobs?
The job cuts are linked to a change in Zomato’s customer-support model.
Over the past six months, the company has shifted more customer-care work to specialized external partners.
As a result, the amount of work requiring a large in-house customer-support workforce has declined.
Zomato now wants the remaining internal team to function as a single unit from Gurugram.
Zomato’s Customer Support Shift
Earlier model
│
▼
Hyderabad + Gurugram
in-house support
│
▼
Large internal workforce
│
│
▼
Model changes over 6 months
│
├── More work outsourced
├── External partners expanded
└── In-house workload reduced
│
▼
Hyderabad operations discontinued
│
▼
Remaining in-house team
consolidated in Gurugram
The restructuring therefore reflects an operational consolidation rather than the complete closure of Zomato’s customer-support function.
Zomato Says Customer Support Model Has Changed
According to the company, the customer-support model has changed significantly during the past six months.
More customer interactions are now being managed through specialized external partners.
The in-house work that remains is being consolidated so that it can operate closer to teams responsible for technology, product development, analytics and business operations.
Before And After
| Area | Earlier Structure | New Structure |
|---|---|---|
| In-house locations | Hyderabad + Gurugram | Gurugram |
| External partners | Smaller role | Larger role |
| Customer-support model | More in-house | Hybrid |
| Hyderabad Customer Delight | Operational | Discontinued |
| Remaining internal team | Distributed | Centralized |
| Product/technology proximity | More dispersed | Gurugram-centered |
The change could allow Zomato to coordinate customer feedback more closely with the teams responsible for its technology and products.
Affected Employees To Receive Four Months’ Pay
Zomato has put in place a severance package for the employees affected by the shutdown.
Sources cited by NDTV Profit said employees will receive their August salary plus four months of severance, including contractual notice pay and a one-time ex gratia payment.
The company is also continuing certain employee benefits after the job cuts.
Employee Support Package
| Benefit | Details |
|---|---|
| August salary | Payable |
| Severance | Four months |
| Contractual notice pay | Included |
| Ex gratia | One-time payment |
| Medical insurance | Continued |
| Counselling support | Continued |
| Insurance/counselling period | Until March 31, 2027 |
| Company laptops | Ownership transferred to employees |
| Company earphones | Ownership transferred |
| Outplacement assistance | Provided |
The outplacement support is intended to help affected employees identify and pursue new employment opportunities.
Zomato Will Consolidate In-House Support In Gurugram
Gurugram will become the company’s single location for remaining in-house Customer Delight operations.
The consolidation is intended to bring customer-support teams closer to Zomato’s product, technology, analytics and business functions.
This could potentially make it easier for customer feedback to flow into product development and operational decision-making.
Gurugram-Centered Structure
Zomato Gurugram
│
┌──────────────┼──────────────┐
▼ ▼ ▼
Customer Product Technology
Delight
│ │ │
└──────────────┼──────────────┘
▼
Analytics
│
▼
Business functions
The company has framed the consolidation around operational integration rather than simply reducing headcount.
More Customer Support Is Being Outsourced
The Hyderabad shutdown highlights a broader shift in Zomato’s operating model.
Instead of maintaining a large internal workforce for every layer of customer support, the company is increasingly relying on specialized external partners.
That can allow a company to scale support capacity more flexibly depending on demand.
In-House Vs Outsourced Support
| Factor | In-House Model | Outsourced Model |
|---|---|---|
| Fixed workforce | Higher | Lower |
| Scalability | Moderate | Higher |
| Operational control | Higher | Shared |
| Cost structure | More fixed | More variable |
| Specialized vendors | Limited | Greater use |
| Direct integration | Strong | Requires coordination |
| Workforce flexibility | Lower | Higher |
The trade-off is that outsourcing can reduce internal staffing requirements while creating greater dependence on external service providers.
The Move Is Not Described As A Performance-Linked Layoff
Zomato specifically said the decision affecting Hyderabad employees was not a reflection of their performance, commitment or contribution.
The company attributed the reduction to its review of the operating model and organizational requirements.
This distinction is important because the layoffs are tied to a change in how customer support is organized rather than an announcement of weak individual employee performance.
Zomato’s Customer Support Strategy Is Changing
The restructuring suggests that Zomato is moving toward a three-part model:
- Centralized strategic in-house support.
- Specialized external partners for a larger portion of customer interactions.
- Greater integration between internal support and technology teams.
Emerging Customer-Service Model
Zomato
│
┌────────────┴────────────┐
▼ ▼
In-house support External partners
Gurgaon │
│ │
└────────────┬───────────┘
▼
Customer interactions
│
▼
Product + analytics
│
▼
Operational improvement
The effectiveness of this model will depend on how well Zomato maintains service quality while shifting more work outside the company.
Customer Support Is Becoming More Technology-Driven
Food-delivery platforms handle large volumes of customer interactions involving orders, refunds, cancellations, delivery delays, restaurant disputes and payment issues.
A significant portion of these interactions can potentially be handled through automation, self-service tools and specialized support providers.
That reduces the need for large centralized teams to manually handle every request.
Areas That Can Be Automated Or Outsourced
| Customer Issue | Potential Handling |
|---|---|
| Order status | Automated tracking |
| Refund status | Self-service / automated |
| Cancellation | App-based workflow |
| Payment issues | Automated verification |
| Delivery delays | Automated alerts |
| Restaurant disputes | Specialized support |
| Complex complaints | In-house escalation |
The shift does not necessarily mean all customer service will be automated, but it suggests a greater emphasis on technology and external specialization.
Zomato Has Previously Reduced Workforce
The latest layoffs are not the company’s first significant workforce reduction.
Zomato previously cut around 500 junior-level employees in April 2025, according to reporting by the Times of India.
The earlier workforce reduction and the latest Hyderabad restructuring should not automatically be treated as the same initiative, however.
The current move has specifically been linked to the restructuring of Customer Delight operations.
Zomato Workforce Changes
| Period | Development |
|---|---|
| April 2025 | Around 500 junior-level employees reportedly laid off |
| Past six months | Customer-support outsourcing increased |
| August 31, 2026 | Hyderabad Customer Delight closure announced |
| August 31, 2026 | ~240-250 employees affected |
| New structure | In-house support consolidated in Gurugram |
The latest restructuring therefore comes within a broader period of operational changes at the company.
Zomato’s Parent Company Is Eternal
Zomato operates under Eternal Ltd, the corporate name adopted by the group that includes Zomato and its other businesses.
The company has expanded beyond food delivery into quick commerce and other consumer-facing businesses.
That diversification means management is increasingly focused on operational efficiency across different business lines.
The Hyderabad customer-support restructuring is specifically related to Zomato’s Customer Delight operations and should not be interpreted as a shutdown of the company’s food-delivery business.
The Move Could Reduce Fixed Costs
One potential benefit of consolidating support operations and outsourcing more work is a lower fixed-cost structure.
Maintaining multiple physical support centers requires expenditure on employees, facilities, management and technology infrastructure.
A centralized internal team combined with external providers could allow Zomato to align support costs more closely with demand.
Potential Cost Structure
Multiple in-house centers
│
▼
Higher fixed costs
│
▼
Consolidation
│
├── One internal hub
└── External partners
│
▼
Potentially more variable
support costs
However, the financial impact of the restructuring has not been disclosed.
No Specific Cost Savings Have Been Disclosed
Zomato has not publicly stated how much money it expects to save through the Hyderabad closure.
The company has instead focused on the change in its customer-support operating model.
Therefore, any estimate of direct cost savings would be speculative.
What Zomato Has And Has Not Disclosed
| Question | Current Information |
|---|---|
| Number affected | ~240-250 |
| Hyderabad operations | Discontinued |
| Gurugram operations | Consolidated |
| Outsourcing | Increased |
| Severance | Four months |
| Cost savings | Not disclosed |
| Future layoffs | Not announced |
| Customer-service impact | Not quantified |
This means the restructuring’s financial contribution cannot yet be measured from publicly disclosed information.
Customer Experience Will Be A Key Test
The most important question for customers will be whether the new support structure maintains or improves service quality.
Food-delivery businesses depend heavily on resolving issues quickly because customers often need assistance while an order is still active.
A larger reliance on external partners can improve scalability but can also create challenges around consistency, training and escalation.
Customer Experience Metrics To Watch
| Metric | Why It Matters |
|---|---|
| Response time | Measures support speed |
| Resolution time | Shows efficiency |
| First-contact resolution | Measures effectiveness |
| Refund processing | Important for customer trust |
| Complaint escalation | Shows complexity |
| Customer satisfaction | Measures service quality |
Zomato has not indicated that the Hyderabad shutdown will result in a reduction in customer-service levels.
The Restructuring Reflects A Broader Industry Trend
The use of external customer-service providers is not unique to Zomato.
Consumer internet companies increasingly use third-party providers and automation for repetitive customer interactions.
This approach can allow companies to scale customer support during peak periods without permanently maintaining the same level of in-house headcount.
The Zomato move is therefore part of a broader transition toward hybrid customer-support models.
What The Zomato Move Means For Hyderabad
The closure represents a loss of approximately 240-250 customer-support jobs at the Hyderabad facility.
For the affected employees, the severance and extended benefits provide some financial support while they search for new roles.
The company’s decision also illustrates how technology companies can change their geographic workforce footprint even when the underlying business continues operating.
Hyderabad Impact
| Area | Impact |
|---|---|
| Customer-support center | Discontinued |
| Employees affected | ~240-250 |
| Zomato food delivery | Continues |
| In-house support | Moves to Gurugram |
| External support | Expanding |
| Employee assistance | Severance + outplacement support |
The company has not announced a broader exit from Hyderabad as a business or technology location.
The Bigger Picture
Zomato’s decision to shut its Hyderabad Customer Delight operations and cut roughly 240-250 jobs highlights a significant shift in how consumer internet companies are managing customer support. Over the past six months, Zomato has moved more customer-care work to specialized external partners and now plans to consolidate its remaining in-house operations in Gurugram, closer to its product, technology, analytics and business teams.
The restructuring does not represent a shutdown of Zomato’s customer-support function or its food-delivery business. Instead, it creates a more centralized hybrid model combining a Gurugram-based internal team with outsourced support. Affected employees will receive four months of severance, including contractual notice pay and a one-time ex gratia payment, while medical insurance and counselling support will continue until March 31, 2027.
Looking Ahead
The success of the restructuring will ultimately depend on whether Zomato can maintain customer-service quality while operating with a smaller internal workforce. The increased use of external partners could provide greater flexibility and potentially lower fixed operating costs, but the company has not disclosed expected savings from the Hyderabad closure. It will also need to ensure that outsourced support teams can handle complex customer issues and escalate cases effectively to Zomato’s internal teams.
For the affected employees, the Hyderabad closure represents a significant workforce disruption despite the company’s severance and outplacement measures. For Zomato, the move signals a broader shift toward centralized operations, specialized outsourcing and technology-enabled customer service. If the model succeeds, other consumer internet companies could increasingly adopt similar structures as they seek to balance customer experience with operational efficiency.
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