In a bid to motivate his ‘under-performing’ sales team, Zomato’s CEO Deepinder Goyal forwarded a mail to his employees highlighting that the company could fail to meets its revenue target as promised to investors, and also addressed several concerns regarding operations.
“We are far behind the numbers that we promised our investors for this financial year– our investors have said that so far, we have always delivered what we have promised. We are close to not living up to that for the first time in the last 5 years,” Goyal mentioned in the email.
The email came after Zomato recently sacked 10% of its global workforce (300 employees). The company is also facing difficulties in retaining a number of senior executives as many left after short stints, reports VCCircle.
Goyal also mentioned in the mail that Zomato’s sales team more than quadrupled in 2015, but failed to meet expected revenue goals. He further states that the team is facing ‘motivation issues’ as they were meeting lesser clients than usual.
He also addressed to the employee’s concerns about the recent lay-offs by stating that only the under-performing employees were laid-off since ‘”they didn’t take their feedback seriously”.
Speaking about the concerns such as slow promotions, lateral hiring of area sales managers, and the lack of stock options, Goyal said: “17% of the employees at Zomato had stock options. “That’s a very large number compared to a lot of startups I know of.”
“The reason you don’t have stock in Zomato yet, is probably because you haven’t consistently made a point that Zomato needs you badly for the next 4 years,” he said. “For us, stock is not a part of compensation and perk-based motivation. For us, stock is a gesture that we want these folks to be at Zomato for a long time to come,” he added.