After the news of the two biggest food-aggregators- Zomato and Swiggy laying-off employees in the country, two of the other big firms, also doing the same.
BookMyShow has laid off or furloughed around 18% of its total workforce that is 270 employees. All this is happening because of the impact of the nation-wide lockdown. On Thursday, the company’s founder and CEO, Ashish Hemrajani, in an official blog post, said that the decision was being taken because of the effect the pandemic had on the consumption of out-of-home entertainment.
According to Hemrajani –“As an organization, we have no option but to take some key decisions around matters of compensation & benefits, on the basis of known variables today. We are constantly pushing ourselves to not choose a path of no-return, but given this extraordinary situation of such magnitude, with no let-up insight, we have had to resort to the task of reducing our costs to align them with what we believe will be greatly reduced revenues in the months to come”.
However, the company will provide all laid-off employees with a severance package that includes a minimum of 2 months of salary irrespective of the tenure or as per notice period, whichever is higher. They will also retain medical insurance for employees and their families until the end of September this year. The company will also do its best to help those employees find new jobs and opportunities once the crisis is over.
As Ola witnessed a huge decline in revenues due to the whole nation-wide lockdown for the coronavirus pandemic, the company has announced that it is cutting 1,400 jobs in India. Ola’s co-founder and CEO, Bhavish Aggarwal, sent an email to all the employees on Wednesday which said that Ola will be laying off 35% of its workforce in India due to the massive impact of the coronavirus pandemic.
“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” – Bhavish Aggarwal said.
According to him, Ola’s revenues have fallen by 95% in the past two months because of the lockdown prevailing in the whole country. He also mentioned that senior members of the management have accepted significant salary cuts to help the company recover. Aggarwal himself tweeted that his will be giving up his own earning for one year. However, all these aren’t nearly enough as the crisis rages on. As of now, both the major cab-aggregator Ola and Uber have resumed operations in many cities in India. Agarwal also said he doesn’t expect things to get back to normal anytime soon.
The only good thing is that Ola is providing a severance package to the laid-off employees. They will be given at least three months of salary in advance. Long-term employees will be given higher pay-outs depending on their tenure. They will also keep their employees’ health benefits until the end of this year. In addition to this, the company is also providing health insurance Rs. 2 lakhs for the laid-off employees’ dependent parents and in-laws until the end of the year.