Quick delivery major Zepto’s quick food delivery arm Zepto Cafe has temporarily shut operations in multiple small cities, mostly in north India, like Agra, Chandigarh, Meerut, Mohali and Amritsar.

According to an ET Now report, about 44 cafes have paused operations, impacting over 400 employees.

In a statement to ET Now, Zepto confirmed the development and said that operations at some cafes have been put on hold to address supply chain challenges. The startup expects to resume operations in these locations by the end of the next quarter.

“We remain committed to the cafe business and will invest aggressively going forward,” a company spokesperson was quoted as saying.

Besides, the report also said that Zepto has decided to cut down the workforce at many of its cafes. While a Zepto Cafe store has 9 staff on an average, the startup plans to bring down to 7-8 for many cafes.

(The story will be updated soon.)

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