COVID-19 Cuts: Ola To Lay off 1,400 Employees; Cites 95% Revenue Loss

20 May, 2020 16:52 IST|Sakshi
Representational Image

BENGALURU: The coronavirus outbreak has triggered unprecedented mass layoffs and furloughs in many companies. Now, Ola, a cab service aggregator, will lay off about 1,400 of its employees from the rides, financial services and food businesses as revenues dipped by 95 percent in the last two weeks due to the outbreak of coronavirus pandemic.

In an email to his employees, CEO Bhavish Aggarwal said, "I write to all of you with the toughest decision I have ever taken --the need to downsize our organization and let go of 1,400 of our valued employees.”

He assured that this will be a one-time exercise and no more COVID-related cuts will be done after this.

"The fallout of the virus has been very tough for our industry in particular. Our revenue has come down 95 percent 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.

Ola will give a minimum financial payout comprising three months of a fixed salary to the affected employees, irrespective of the notice period.

According to a company note, the departing employees 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.

On Tuesday, Ola resumed services after the various state governments allowed its drivers to operate three- and four-wheelers with precautions.

Also Read:Lockdown 4: Ola, Uber Announce Travel Services In More Cities

More News