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AII-1001-87419
ReportedReported by fewer than three independent publishers, with no official finding.

Zomato lays off 600 customer support staff following Nugget AI deployment

Zomato reportedly laid off approximately 600 customer support employees from its ZAAP program shortly after deploying its AI-powered customer service platform Nugget in February 2025. The AI system can resolve around 80% of customer queries without human intervention, significantly reducing the need for human support staff.

1 April 2025 Β· Zomato Β· Governance, accountability and labour
1 April 2025
AII-1001-874192 sources ↓
Quick facts
Organization
Zomato (subject)
Category
Governance, accountability and labour
Country
India
Source
The Financial Express
Date
1 April 2025
Drafted by
Raidu Incident Detection

What happened

Zomato laid off approximately 600 customer support employees hired under its Zomato Associate Accelerator Programme (ZAAP) in early 2025, shortly after launching its AI-powered customer service tool Nugget in February 2025.

Nugget was developed over three years and reportedly can independently resolve around 80% of customer queries and handle over 15 million monthly support interactions across Zomato, Blinkit and Hyperpure platforms.

Reported impact

The affected employees, primarily freshers with an average annual salary of approximately Rs 4.5 lakh, were based in Zomato's Gurugram and Hyderabad offices.

Further layoffs within ZAAP are expected, with the workforce projected to shrink to around 400-500 employees in the coming weeks.

Index analysis

The company had hired approximately 1,500 to 1,600 people for ZAAP across multiple campuses, with hiring continuing until four months before the layoffs as the company expanded its customer service team.

The company conducted performance reviews and dismissed employees accordingly. Nugget played a role in assessing ZAAP employees' performance.

Classification

Organization
Zomato (subject)
Category
Governance, accountability and labour
Industry
Consumer services
Country
India
Harm status
Actual harm
Intent
Unintentional
Timing
Post-deployment
Harm types
Economic or property
Harmed
Workers
Failure modes
Overreliance
AI systems
Nugget

Sources and evidence

This record was researched and written by the Index, based on the following original reporting.

The Financial Express
Zomato lays off 600 customer support staff as AI takes over
1 April 2025
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1 April 2025