Ola to layoff 1,400 staff as COVID-19 pandemic hits revenues
Bengaluru, May 20: Ride-hailing service provider Ola will layoff 1,400 staff as revenues declined by 95 per cent in the last two months due to coronavirus pandemic. The job cuts were announced in an internal email note by CEO Bhavish Agarwal to staff.
In an email to employees, Aggarwal made it clear that the prognosis ahead for the business is "very unclear and uncertain" and the impact of this crisis is "definitely going to be long-drawn for us".
"The fallout of the virus has been very tough for our industry in particular. Our revenue has come down 95 per cent over the past 2 months. Most importantly, this crisis has affected the livelihoods of millions of our drivers and their families across India and our international geographies," he said.
The company has decided to downsize and "let go" of 1,400 employees, Aggarwal added.
The layoffs at Bengaluru-based Ola Cabs come as the country remains in the fourth phase of a nationwide lockdown to curb the spread of the coronavirus pandemic, which has pushed the economy into a standstill and forced many businesses to trim operations.
Over the past four weeks, at least two dozen top companies have fired employees and contract staff. They include Oyo, BlackBuck, BharatPe, Acko, Fab Hotels, Zolo Stays, Treebo, Udaan and Homelane. Others such as Bounce, Livspace, AgroStar, BookMyShow and Droom have cut salaries, according to data shared by Big.Jobs.