Advertisement

Zomato cancels salary cuts and decides to give three times back to employees

Online food aggregator Zomato has been decided to rollback salary cuts and also to give thrice the amount to the employees who took voluntary salary cuts as the company reported stellar performance in FY20 as compared to the preceding fiscal as well.
“For everyone who took voluntary salary cuts, we are rewarding them for their commitment to the company, as well as they will get 3x the amount of their voluntary deduction in the form of ESOPs (i.e. at zero exercise price),” that Deepinder Goyal, the co-founder, Zomato told in a tweet on Friday as well. The unicorn company has also told that it has re-instated any salary cuts and that was rolled out to its employees since April. “In fact, we are paying back all the deductions made to people who faced mandatory salary cuts at the Zomato,” as Deepinder Goyal told.

Advertising
Advertising

In May 2020, Zomato laid off around 520 employees or about 13% of its total workforce in a huge retrenchment exercise as novel coronavirus pandemic situation cracked businesses. Meanwhile, the company has now been reported revenue growth of around 105% in FY20 as compared to FY19 while its costs grew by only 47% in the corresponding period.
Zomato told that while coronavirus has impacted business, but called it a “blip” whenever a company aims for the next 100 years as well.

Advertisement

Advertisement

Our revenue in FY20 grew by around 105% as compared to FY19 while the costs grew by only about 47% in the corresponding period as well. Moving our business towards profitability was a core focus for us in FY20 and also we made significant progress along that journey as well.

Whereas, of mentioning the achievements Zomato in the last fiscal, the food delivery firm added that it literally acquired the Uber Eats India business in January 2020 which helped the firm propel to market leadership in this competitive space as well. Zomato further also told so well coordinated by both the teams that it was able to transfer and retain around 97 percent of the combined gross merchandise value on the Zomato app.

Also Read: ICICI Bank will provide 8% pay hike to almost 80,000 employees