Zepto to Lay Off Upto 300 Employees as Part of Cost Optimisation Initiative

Quick commerce platform Zepto has removed about 300 employees from its payroll as part of its latest cost-cutting exercise, as per the news reports. The decision comes soon after the company raised $450 million in funding, which valued it at around $7 billion, a 40% jump from last year’s $5 billion valuation.

Shift to Third-party Contracts

The affected employees have been moved to third-party service providers that work with Zepto and other firms. This change allows the company to reduce its fixed monthly employee costs while continuing to maintain its day-to-day operations. The restructuring included staff from operations, technology, finance, and category management.

Automation Behind Layoffs

As per Inc42, Zepto has been automating several internal processes over the past few months. Since early this year, around 1,000 employees have been impacted as the company replaced some functions with automated systems. A large share of the job cuts came from customer support, which is being increasingly managed through automation. 

Some of the affected staff were moved to quality check and support roles to limit layoffs.

Company Statement

Zepto confirmed the development, saying it has been working to improve cost efficiency. Over the past 6 months, it has built in-house software to handle routine functions such as invoice processing, replenishment, and real estate management, most of which were earlier handled by off-roll employees.

Focus on Spending Control

In a company-wide meeting on October 17, 2025, CEO Aadit Palicha said Zepto would take a strict approach to expenses. The company plans to cut down on cloud and software costs, develop internal dashboards, and limit hiring unless essential. Zepto currently has around 5,700 employees on its payroll and plans to keep the headcount steady.

Competition in Quick Commerce

Zepto competes with Blinkit and Instamart in India’s quick commerce segment, which has seen growing competition from Amazon and Flipkart Minutes. Earlier this year, the company closed 45-50 Zepto Café outlets due to sourcing issues and limited staff availability.

Read More:Zepto Secures $450 Million from CalPERS at $7 Billion Valuation, Eyes to File IPO Soon!

Conclusion

With automation and spending controls in place, Zepto aims to keep operations lean while managing costs across departments.

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