Bengaluru, May 20: Ride-sharing company Ola Cabs said on Wednesday it will lay off 1,400 of its employees due to business uncertainty caused by the coronavirus pandemic while the revenue has come down by 95 per cent in the past two months.
"The COVID crisis continues to unfold all around us causing unprecedented economic and social destruction. It has also become evident that the coronavirus will not be eliminated any time soon," wrote co-founder and CEO Bhavish Aggarwal to all Ola employees.
"In these circumstances, today I write to all of you with the toughest decision I have ever taken -- the need to downsize our organisation and let go of 1,400 of our valued employees," he said.
Aggarwal said the fallout of virus has been very tough for the cab aggregating industry in particular. "The company's revenue has come down by 95 per cent over the past two months," he said.
Initially, he said, the company hoped it would be a short-lived crisis and that its impact would be temporary. "But unfortunately, it is not been a short crisis. And 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, said Aggarwal.
"The world is not going to revert to the pre-COVID era anytime soon. Social distancing, anxiety and an abundance of caution will be the operating principles for everyone," he told employees.
Aggarwal said the crisis necessitates the need to conserve cash aggressively so that Ola is able to invest in opportunities in the future, adding the downsizing exercise has been a very tough and sad decision for the management team to make.
"While we restructure our organisation to the new realities of our business, we are also going to recommit ourselves to strengthening our operational excellence and leverage a lot more technology to improve efficiencies and reduce cost across all parts of our business," he said.
Comments
Monkey came for mangalore to go kerala...publick is stuppid.
After bringing Yogi to Kerala through Mangalore , BJP had lost their prospect in both states. the man with lot of criminal cases on his head has come to teach the law and order. People will start to compare their state with yogis ruled state. People want their children not to die due to lack of oxygen, People dont want to loose their monumental identities, People want to live in love and peace. they dont want price rice. and many more. By bringing this uneducated man to educated stateS BJP itself will realize their mistake
Why these days communal gundas visiting our manglore? Is there any conspiracy to disturb the peace in dakishin kannada?? May god save our DK.
Just wasting tax payers money only one intention to spread communal unrest all over INDIA. But state like Kerala with 100% educated Malayaly nothng will happen. Even rss's heavy funding to noted goondas they cannot make a Hair Line Fracture to Kerala State. At Punjab, Bengal and Kerala rss notable to cook their dish DHAAL NAHI GHALAGHI.
Amit Shah's Drama in front of temple never accepted by any HINDU Diety.
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