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New Delhi: Zepto has laid off approximately 300 employees off its books as part of an evinced overall cost-cutting measure. The firm, which has recently raised $450 million with a valuation of $7 billion, is aiming at reducing the cost of operations and maintaining productivity.
There have been approximately 1,000 employees that have been affected since the beginning of the year. By automating workflow and outsourcing certain functions to third parties, Zepto will focus on cost optimisation, which will not reduce the output but rather lower the fixed employee costs.
Various departments such as operations, technology, category management, and finance have been impacted by the layoffs and position changes. One of the greatest numbers of affected employees belonged to the customer support that is being automated. Other employees have been assigned to quality assurance and quality check units to retain talent where possible.
In response to Moneycontrol, Zepto affirmed that it is a cost-efficient company. One of the spokespersons said that we are creating a culture of cost excellence irrespective of the size of our balance sheet. The company has been automating operation exercises like invoice handling, replenishment and real estate management, which are normally performed by off-roll employees.
Besides the workforce costs, Zepto is also reducing its software expenditures and cloud expenditures, such as Amazon Web Services (AWS) spending. Aadit Palicha, the CEO, at a town hall meeting told employees that the company will be frugal and create additional tools internally and that they will consider new hires a right. Zepto will have approximately 5,700 employees on roll, and the intention of the company will be to sustain a lean workforce with a target to increase business output with the existing number of employees.
