Zomato is shutting down its Hyderabad customer support hub, impacting approximately 240 employees as the firm shifts toward an outsourced model. The company plans to consolidate remaining in-house support at its Gurgaon headquarters to improve operational efficiency. While this move does not affect other business verticals, investors may track whether the transition to third-party partners impacts customer service quality or margins.
Zomato has announced the closure of its customer support operations in Hyderabad, a move that impacts approximately 240 employees. This structural adjustment is part of a broader shift in the company's operational strategy, which increasingly relies on external partners to manage customer queries rather than maintaining large in-house teams.
By consolidating the remaining support functions at its Gurgaon headquarters, the company intends to better align its service teams with core product and technology units. For investors, this represents a deliberate move toward a leaner cost structure. Transitioning customer service to third-party partners is a common strategy used by platform businesses to reduce fixed payroll expenses and gain the flexibility to scale support operations up or down based on actual demand.
To manage the transition, Zomato has announced a support package for the affected staff. This includes the salary for August, an additional four months of pay, and extended medical insurance and mental health counseling access through March 31, 2027. The company is also providing dedicated outplacement support to help these employees find new roles.
This decision follows previous workforce adjustments at the company, including a reduction of about 500 roles in April 2025. While that earlier move was linked to performance metrics, the current closure in Hyderabad is defined by the company as a strategic shift in its operational model. Zomato has clarified that this restructuring is limited to the support operations in Hyderabad and does not affect other business verticals such as Blinkit, Hyperpure, or the District platform.
The primary business risk associated with this move is the potential impact on service quality. Since Zomato’s business model relies heavily on a high standard of customer experience to drive repeat usage, delegating support tasks to third-party partners can introduce execution risks. If service response times or resolution quality drop, it could potentially affect customer satisfaction. Investors may monitor future quarterly performance updates to see if this shift leads to measurable improvements in operational margins or if it creates friction in customer experience metrics.