So far, pandemic has been doing worse to every sector, companies has been eliminating their employees decreasing their workforce as they are witnessing dip in their revenue and profit generation.
After Uber, it’s Ola who adopted a harsh approach and lay off its 1400 employees, almost 25% of its workforce as the company’s revenues have declined by 95% in the last two months. The CEO Bhavish Aggarwal announced the job cut via an email saying that the company has to do these layoffs as they do not see the situation improving any time soon because most offices will have employees work from home and travel will also come down.
In an email to employees, Mr. Aggarwal made it clear that the prognosis ahead for the business is “very unclear and uncertain” and the impact of this crisis is “definitely going to be long-drawn for us“.
“The fallout of the virus has been very tough for our industry in particular. Our revenue has come down 95 per cent over the past 2 months. Most importantly, this crisis has affected the livelihoods of millions of our drivers and their families across India and our international geographies,” he said.
“In these circumstances, today I write to all of you with the toughest decision I have ever taken – the need to downsize our organization and “let go” of 1400 of our valued employees, “the CEO said.
Mr. Aggarwal said that this will be a one-time exercise and will be complete by the end of this week for the India Mobility business, and by the end of next week for Ola foods and Ola Financial Services. “No more COVID-related cuts will be done after this exercise,” he noted.
Due to the outbreak covid-19 pandemic and dried up demand and supply of businesses, number of tech-led business like Uber, Zomato and Swiggy have announced job cuts in the past few weeks.
The CEO mentioned that the impacted employees will receive 3 months salary and other benefits like ESOPs and company insurance till the end of the year.