Ola Cuts 1,400 Jobs Following 95% Revenue Slump Amidst Coronavirus Lockdown

Ola Cuts 1,400 Jobs Following 95% Revenue Slump Amidst Coronavirus Lockdown
Ola has introduced that it’s chopping 1,400 jobs in India following a large decline in revenues amidst the coronavirus lockdown. In an e-mail despatched to all firm staff on Wednesday, Ola’s co-founder and CEO, Bhavish Agarwal, mentioned that the ride-aggregator is shedding 35 % of its workforce in India due to the influence of the coronavirus pandemic.

According to Agarwal, the corporate’s revenues have fallen 95 % over the previous two months due to the nationwide lockdown. Members of the administration group have all taken important wage cuts to assist the corporate recuperate, he mentioned. However, that alone isn’t practically sufficient because the disaster rages on. Both Ola and Uber have restarted operations in lots of cities, together with in Delhi. However, Agarwal says he doesn’t anticipate issues to get again to regular anytime quickly.

“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”, he mentioned.

The solely silver lining is that the corporate is providing a severance package deal to the laid-off staff. According to Agarwal, they are going to be supplied with a minimum of three months of wage. Long-term staff may even be eligible for greater payouts relying on tenure. They’ll additionally get to maintain their staff’ well being advantages for themselves till the top of the yr. In addition, the corporate can be providing medical insurance for his or her dependent dad and mom and in-laws as much as a sum of Rs. 2 lakhs till the top of the yr.

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