The COVID-19 necessitated lockdown has brought the economy to a standstill. With the further extension of the lockdown, businesses are being forced to shut down or trim operations.
Ola cab, India's ride-sharing company, said on Wednesday that it will lay off 1,400 of its staff, 25% of its workforce due to the drop in revenues caused the coronavirus necessitated lockdown.
Company's co-founder and CEO Bhavish Aggarwal stated in a communication to the company's employees that the pandemic has led to a drop of 95% in revenues in two months.
"Unfortunately, the COVID crisis continues to unfold all around us causing unprecedented economic and social destruction... The world is not going to revert to the pre-COVID era anytime soon," Aggarwal stated in the communication.
Every affected employee will receive a minimum financial payout of 3 months of their fixed salary, the company assured. The company note further stated that the employees who were laid off will be able to continue using their medical, life and accident insurance cover, and medical insurance cover up to Rs 2 lakh for parents till December 31.
The COVID-19 necessitated lockdown has brought the economy to a standstill. With the further extension of the lockdown, businesses are being forced to shut down or trim operations.
OLA CEO said that this is a one time exercise which will be completed by the end of this week for the company's ride-sharing business, and subsequently, cuts will be done for Ola Foods and Ola Financial Services in the next week.
However, the company assured that there will be no more COVID-related cuts following the exercise.
Meanwhile, Uber Technologies Inc, which owns ride-hailing services Uber among other digital businesses, is cutting additional 3,000 jobs, after announcing that it would eliminate about 3,700 jobs amid COVID-19 pandemic.
Earlier this month, Uber announced that it was eliminating about 3,700 jobs and planned to save more than $1 billion in fixed costs.
In an email to staff Monday, Uber CEO Dara Khosrowshahi said the company would close down 45 offices and lay off some 3,000 additional people.
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