Online Food delivery app Zomato re-instated salary cuts, paying back all deductions
Online Food delivery app Zomato said, We have re-instated any salary cuts that we rolled out to our employees since April. In fact, we are paying back all deductions made to people who faced mandatory salary cuts at Zomato.
3 – We have re-instated any salary cuts that we rolled out to our employees since April. In fact, we are paying back all deductions made to people who faced mandatory salary cuts at Zomato.
— Deepinder Goyal (@deepigoyal) July 10, 2020
[4/n]
Deepinder Goyal, co-founder, Zomato said in a tweet on Friday, “Our revenue in FY20 grew by 105% as compared to FY19 while the costs grew by only 47% in the corresponding period. Moving our business towards profitability was a core focus for us in FY20 and we made significant progress along that journey.”
“In July 2020, we estimate our monthly burn rate to land under $1m, while our revenue should land at 60% of pre-COVID-19 peaks ($23m per month)” he said.
“For everyone who took voluntary salary cuts, we are rewarding them for their commitment to the company, and they will get three times the amount of their voluntary deduction in the form of ESOPs (at zero exercise price),” he said
In May 2020, Zomato had announced pay cuts for the entire organization and laid off 13% of its total workforce (about 500 employees) in a huge retrenchment exercise as novel coronavirus pandemic cracked businesses. In the first phase of the lockdown, order volumes for food-delivery apps fell to less than 300,000 per day from nearly 2.5 million orders per day.
However, the company has now reported revenue growth of 105% in FY20 as compared to FY19 while its costs grew by only 47% in the corresponding period
