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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cannot slaughter cow surely we agree, we dont want to eat cow meat , even in gulf country ,but why hypocracy of exporting cow meat to other outside countries, our govt should stop exporting ,I will agree or else this issue of hypocrate
Beef Janata Party (BJP) must be imprisoned life for exporting beef . INDIA is NO. 1 iN BEEF EXPORT during BJP rule. STOP this fake hindutva drama . Eating beef behind the door and crying for cow in front of masses.
tell central govt stop all beef exports currently INDIA is no 1 Exporter in the world ..... then we will stop
About the caste n religion there should be any sort of blood shed murder or hate speech. About ayodya issue hope SC will give a fare decision respecting all religion if criminal groups nor enter their nose with our nations judicual system. About cow slaughter and export,most leaders of vhp groups are in this trade. Then why this so called sadvi with double fame policy.
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