Ola to layoff 1,400 staff due to COVID-19 pandemic, revenues decline by 95%

New Delhi: Cab aggregator Ola said that it is going to lay off 1,400 staff from rides, financial services and food business due to the COVID-19 pandemic which has hit the company’s revenues drastically.

In an email to employees, CEO Bhavish Aggarwal said, “The fallout of the virus has been very tough for our industry in particular. Our revenue has come down 95% over the past 2 months. Most importantly, this crisis has affected the livelihoods of millions of our drivers and their families across India and our international geographies. In this moment, various teams across the group have pursued, in spite of the many constraints, to serve drivers, citizens, and the nation at large.”

He wrote that between May 20 and and May 24, the Ola HR team will have 1:1 conversations with each and every one of the impacted individuals.

The Ola CEO said that those given the pink slip will get paid for 3 months of their fixed salary while those associated with the company for a longer tenure will get more.

“Every affected employee will receive a minimum financial payout of 3 months of their fixed salary, irrespective of the notice period. Beyond this, those employees who have spent significantly more time with us will be eligible for higher payouts depending on tenure,” Agarwal mentioned.

“While nothing can take the emotional trauma away for those of our colleagues who will be leaving, we have tried to bring together a comprehensive benefits plan that will ensure that every single team member affected is given maximum support on all fronts – financial, healthcare, emotional, and career-support,” he wrote.

The mail also mentioned about the insurance facility for employees. It said that employees can continue using their medical, life and accident insurance cover for themselves and their families up to 31st Dec 2020 or the start of their next job whichever is earlier.