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
Dear Muthalik just advise embrace islam at least this last moment and avoid became fuel of hell
The difference is nothing but muslims consider them as bothers. but BJP people wont treat like brothers and they will see them as just "victims". So BJP shows sympathy even if ready to help. Muslims and real Hindus will show empathy
Why the media publishing these Street Dog's Barking!!!!
Very good says our greatest feminist Muthalikanna!!!!!!!!! Fantastic do not be Jeleouus you are the strongest man in the world or hindustan, and afried about giving shelter the shelterless human being, In between do not bring the relegion or caste, but we hindustanis always welcome this is our greatest rich culture but master Blaster not knowing these culture, If you see his face what you Understand, Muthalikanna be a human being then see other human being, then you understand what is the human rights, then only all these nasty religion or caste!!!!!!!!
Add new comment