Zomato—Laid off 500-600 customer service employees after launching AI system that handles 80% of queries
In April 2025, Zomato laid off 500-600 employees from its Zomato Associate Accelerator Program without prior notice, giving only one month's severance. The layoffs followed the launch of 'Nugget', an AI platform handling 15 million monthly interactions and resolving 80% of queries without humans. Employees reported being dismissed for minor issues like being late by 28 minutes on average, with AI performance tracking ranking workers into tiers.
Scoring Impact
| Topic | Direction | Relevance | Contribution |
|---|---|---|---|
| Worker Rights | -against | primary | -1.00 |
| Overall incident score = | -0.885 | ||
Score = avg(topic contributions) × significance (high ×1.5) × confidence (0.59)
Evidence (1 signal)
Laid off 500-600 customer service employees after launching AI system that handles 80% of queries
In April 2025, Zomato laid off 500-600 employees from its Zomato Associate Accelerator Program without prior notice, giving only one month's severance. The layoffs followed the launch of 'Nugget', an AI platform handling 15 million monthly interactions and resolving 80% of queries without humans. Employees reported being dismissed for minor issues like being late by 28 minutes on average, with AI performance tracking ranking workers into tiers.