While growth and funding have been the talk of the town in the startup ecosystem, layoffs seems to be the new trend that’s catching up. Startups like Townrush, Tinyowl, Housing.com, Helpchat and a few others have been cutting down their workforce due to change in the business models.
It is now Zomato which is downsizing its team. According to a TechCrunch report, Zomato is laying off around 10% of employees from its current 3000 strong team. The layoffs will be largely from the “content” team, the employees who collect data from restaurants listed on the Zomato platform. Basically, it is shifting focus from the Fleet on the Street model, as a lot of the information that these teams gather is usually already available online. As per the company, the bulk layoffs will be in the US, as this “Fleet on the Street” approach is not required there.
A few lines from the latest blog posted by Deepinder Goyal, Founder and CEO of Zomato specified the same message.
His blogpost reflected that as the startup was shifting focus towards transaction-based model, it was looking at ways to optimise the content team. Majority of this being in the US and other regions that are relatively smaller markets for the company.
“The time has come for us to focus deeply on transactions in countries where it matters. We are also going to make important changes to our business and make sure we put every dollar and every Zoman behind the things that matter the most.”
Going forward, the company will focus on Zomato for Business app so that more business owners start managing their listings themselves.