INTRO: Ola has announced that it is cutting 1,400 jobs in India following a massive decline in revenues amidst the coronavirus lockdown. In an email sent to all company employees on Wednesday, Ola’s co-founder and CEO, Bhavish Agarwal, said that the ride-aggregator is laying off 35 percent of its workforce in India because of the impact of the coronavirus pandemic.
Ola Revenue Goes Down by 95% resulting in cutting Jobs
According to Bhavish Agarwal the CEO and Co-founder of OLA in his statements he informed that the company’s revenues have fallen by 95 percent over the past two months just because of the nationwide lockdown due to the infectious disease Coronavirus. Members of the management team have all taken significant salary cuts to help the company recover from it, he said. But just these steps weren’t enough, or that alone isn’t nearly enough as the crisis rages on and on.
Both Ola and Uber have restarted operations in many cities, including in Delhi. However, Agarwal says he doesn’t expect things to get back to normal anytime soon just like earlier times.
Ceo of OLA Said In his Statement:
“The future prognosis ahead for our business is very unclear and uncertain or you can say is doubtful. It is not going to take a long time for people to go out and about like before they used to. With more and more companies preferring to have a large number of employees work from home, the 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 and our organization”, he said.
Offering Severance Package to Laid Off Employees
The only silver lining or a ray of hope is that the company is offering a severance package to the laid-off employees. According to the CEO, they will be provided with at least three months of salary. Long-term employees will also be eligible for higher payouts depending on tenure.
They’ will also get to keep their employees’ health benefits for themselves until the end of the year. In addition, the company is also offering health insurance for their dependent parents and in-laws up to a sum of Rs. 2 lakhs until the end of the year.