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
Do you know who start the tippu jayanthi dear
This is the fact, a party built on corrupt ideology will not survive. The entire nation will know the truth.
What is their moral value of these guys who killed that person who sacrificed his whole life for the nation. What can we expect from these people. Until the past few years they were agreeing TIPU SULTAN as the best ruler, tiger of Mysore, and the man who taught to resist the invaders.
Just for the personal benefits, the same guys portray him negatively
People of such a mentality should be catalgorized as sick and mentally distorted group who should not be considered fit for election or make any policitical party.
The wise people should boycott such immoral party, Support the fair and the reliable party. If not available go for the least corrupt party.
Eddi is the only CM who spent his life in jail for corruption (not as a freedom fighter)
Think of our future geneations and our children,
God help our country from these corrupt group.
Dear Sandesh
if you want join with bjp policy no objecttion but don't involve Hindu religion. All Hindus are not as you wished.
During BJP govt all these communal leaders including cheddiyurappa was on the dias to celebrated Tipu Jayanthi so now what happen with different colour and tune.
Go with the history i/o rss book.
Jai Hind Jai Karnataka
Why all people blaming BJP. Why this govt cant avoid celebration
BJP leaders are mentally retarded people. Trouble makers
All Hindus should support BJP's decision
BJP openly said they will oppose. If they didnt say anything also they will do the same. They will make trouble as they did previous year
Govt should seek order from hc or sc for arresting all BJP goons
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