AI Replaces Support Staff
Zomato Closes Hyderabad Support Center and Cuts 250 Jobs Amid AI Pivot
Anonymous
Key Points
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At its launch, Nugget was handling more than 15 million customer interactions per month across Zomato, Blinkit, and Hyperpure, with Deepinder Goyal claiming it could resolve up to 80% of queries without any human involvement.
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Nugget was announced in February 2025 by Zomato co-founder and CEO Deepinder Goyal and had been in development for about three years prior to its public unveiling; it was tested extensively inside Zomato before being pitched to outside clients.
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The Hyderabad layoffs include detailed severance and post-employment support: four months of severance pay plus contractual notice pay and a one-time ex gratia payment; medical insurance and counselling run through March 31, 2027; company laptops and earphones to be transferred to employees for personal use; dedicated outplacement assistance.
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There are discrepancies in reported headcount: NDTV Profit cites about 240 Hyderabad employees affected, while Economic Times and other outlets report around 250; the broader restructuring aligns with consolidating in-house work at Gurgaon and outsourcing more to external partners.
Zomato is shutting its Hyderabad customer support center, affecting around 250 employees, as the food delivery giant pivots toward AI and outsourcing partners. Indian Startup News reports the closure follows a strategic review aimed at consolidating in-house operations at Gurgaon headquarters while shifting more customer service work to external providers.
The layoffs align with Zomato's February 2025 launch of Nugget, an AI platform designed to handle customer queries with minimal human involvement. Gujarat Samachar notes Nugget was already processing over 15 million interactions monthly across Zomato, Blinkit, and Hyperpure, signaling potential for further workforce reductions as the platform scales.
Why Zomato Built Nugget and Why Now
Nugget took about three years to develop before its public announcement in February 2025. Co-founder Deepinder Goyal claimed the AI platform could resolve up to 80% of customer queries without human agents. Investment Guru India describes the tool as an AI-native, no-code platform designed to scale support operations rapidly.
The timing matters: Zomato tested Nugget extensively inside its own operations before pitching it to external clients. At launch, the system was handling 15 million monthly interactions across Zomato's delivery, quick-commerce, and B2B arms. The success of that internal pilot appears to have triggered the Hyderabad closure decision.
What Affected Employees Will Receive
Zomato is providing severance packages to cushion the blow. Employees get four months of severance pay plus notice period compensation and a one-time ex gratia payment. Medical insurance and counselling services extend through March 31, 2027, ensuring continued health coverage for nearly two years post-layoff.
The company will also transfer company laptops and earphones to staff for personal use. News Karnataka notes Zomato is offering dedicated outplacement assistance to help workers find new jobs. The support package frames the cuts as a strategic restructuring rather than a performance-driven termination.
Consolidation at Gurgaon, Outsourcing Elsewhere
The Hyderabad closure reflects a broader organizational shift. Ind Today reports the company reviewed its Customer Delight operating model and organizational structure, deciding to centralize in-house operations at Gurgaon while expanding partnerships with external customer service providers. This dual approach reduces fixed costs while scaling flexibility.
The strategy mirrors patterns across tech firms adopting AI: keep core development in-house, automate routine work, and outsource overflow to third parties. Nugget's early success—handling tens of millions of monthly interactions—appears to have validated Zomato's hypothesis that human headcount can shrink as AI improves.
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