Zomato Shuts Hyderabad Support Center to Automate Service

Zomato is shutting down its customer support center in Hyderabad, resulting in the loss of approximately 250 to 300 jobs. The affected workers are employed through third-party service providers rather than the company's direct payroll.

The move is part of a broader restructuring to automate customer support using Nugget, an in-house AI platform. Nugget currently handles over 15 million conversations per month with 85% automation coverage, reducing annual support costs from $20 million to $9 million. Zomato is consolidating its remaining internal support operations in Gurugram to better align with its product, technology, and analytics functions.

Zomato stated the decision stems from changes to its operating model rather than employee performance. Affected staff will receive their August salary and four months of severance, including a one-time ex gratia payment. The company will also provide medical insurance and counseling until March 31, 2027, and allow departing employees to keep company-issued laptops and earphones.