COVID-19 Pandemic has disrupted each and every business in India and the World which is leading to a large number of companies shutting down temporarily or permanently, while those who are operating are facing huge problems in coping up with operating costs.
In this series of layoffs: Ola, India’s ride-hailing service has announced on Wednesday that the company is cutting 1,400 jobs which are about 35% of the companies workforce in India. The company made this decision to reduce the expenses to cope with the COVID-19 outbreak that has severely affected the mobility companies in the country.
Bhavish Aggarwal, co-founder, and CEO of Ola bestowed the job elimination update with the team in an email today, in which he also reported that the company’s revenue had dropped by 95% in the last two months after the nationwide lockdown by Government of India in late March to curb the spread of the virus.
“We had all hoped in the beginning that this would be a short-lived crisis and that its impact would be temporary. Over the past couple of months, all members of our extended leadership team have taken significant salary cuts to be able to help the organization delay tougher people’s decisions as we waited for the situation to evolve. But unfortunately, it’s not been a short crisis. And the prognosis ahead for our business is very unclear and uncertain. It is going to take a long time for people to go out and about like before. With more companies preferring to have a large number of employees work from home, air travel limited to essential trips and vacations being put off for better times, the impact of this crisis is definitely going to be long-drawn for us. The world is not going to revert to the pre-COVID era anytime soon. Social distancing, anxiety, and an abundance of caution will be the operating principles for everyone.”Bhavish Aggarwal, co-founder, and CEO of Ola wrote in the statement
An Ola spokesperson told TechCrunch that the employees working in mobility and food operations were impacted and all job cuts are limited to teams in India while the Ola Electric remains unaffected to the layoffs.
He also mentions that all employees that have been laid off will be provided with three months of salary as well as insurance coverage for them and their parents, healthcare and emotional support until the end of the year
Since the changes in nationwide lockdown has been made Ola and other ride-hailing services are allowed to operate in some cities of the country and as of today, Ola is operating in more than 160 cities across the country.
India’s top Food-delivery services Swiggy and Zomato both have made huge job cuts in their companies in recent weeks. Other startups in India like Oyo, MakeMyTrip, and Ixigo have also made huge job cuts in recent months due to significant drops in revenues.