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.
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Here every one had a mistake. No one not ready to take their responsibility. So we no need to blame any one. The only one solution to stop the accident the government would install radar to every 5KM gap on each corner of the raod with camera (as it is in Saudi Arabia) with maximum speed of 40K.M. per hour. If they crosses this speed they will be penalty of Rs.200/- minimum. If this is done definitely accident will slow down soon and every rider will be safe. But government will cost more once.
Think this traffic department to install and fix the device in every corner of the road.
Road Accident is a serious issue. Daily hundreds killed because of it in India. But unfortunately nobody ( both govt and public) doesn't take this matter seriously..
why we should have a car which has speed of more than 80km per hour. Better late than never...
Oh Gov't.., do something for the sake of innocents life which you can.....
Inna LIllahi Wa Inna Ilahi Rajoon!
Motor bike is not at all good for mangalore roads....it is a kind of death trap...traffic is increasing day by day...no space for small vehicles to move around...at the same time big truck entering from nowhere...overall this kind of accidents are invited every now and then...so tragic...we need to ban motor bikes...most of young boys and couples are getting killed...so sad...
Inna lillahi vainna ilaihi rajihoon, O Allah forgive them and make good here after to them
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