Eternal, the parent company of Zomato and Blinkit, is closing its Hyderabad customer support operations. The move involves 250 job cuts as the firm shifts core support functions to its Gurugram headquarters and increases reliance on third-party vendors to streamline costs.
On Monday, August 31, 2026, Eternal, the parent company behind food delivery giant Zomato and quick-commerce platform Blinkit, announced the closure of its customer support center in Hyderabad. This decision will result in the layoff of approximately 250 employees. According to company reports, affected staff members are being provided with severance packages covering four months of pay.
The closure is part of a broader internal reorganization. Eternal is centralizing its core in-house customer support teams at its headquarters in Gurugram. By co-locating these support functions with its product, technology, and analytics departments, the company aims to improve coordination and response times for critical issues. Simultaneously, the firm is moving toward a hybrid model by increasing its dependence on third-party outsourcing partners for routine support tasks.
For investors, this operational shift highlights the company’s focus on managing its cost structure while navigating the competitive food delivery and quick-commerce sectors. While outsourcing routine tasks can help improve operating margins, it also introduces operational risks. If the quality of customer support drops, it could impact brand loyalty, a critical factor in a market where customer retention is highly valued. Investors will likely monitor the company’s upcoming quarterly financial results to see if these cost-cutting measures translate into improved profit margins without hurting service delivery.
The company's stock experienced minor volatility during the trading session on August 31, 2026. The price movement was influenced not only by this internal news but also by broader market activity surrounding the anticipated MSCI index rebalancing, which is expected to bring significant capital inflows into the stock.
Moving forward, the primary concern for market participants is the long-term impact of this restructuring. The quick-commerce business model relies heavily on rapid growth and high operational efficiency. The success of this move will depend on whether Eternal can maintain high service standards while simultaneously reducing its reliance on in-house support teams. Investors should track future management commentary regarding service quality, outsourcing costs, and overall profit margin performance to gauge if this strategic pivot is delivering the intended efficiency gains.