Hard hit by the coronavirus pandemic and an uncertain future, cab aggregator Ola on Wednesday said it will lay off 1,400 of its staff in a one-time exercise.
The coronavirus pandemic has led to a drop of 95 per cent in Ola’s revenues in two months, co-founder and CEO Bhavish Aggarwal said in a communication sent to the company’s employees.
The layoffs at Bengaluru-based Ola Cabs come as the country remains in the fourth phase of a nationwide lockdown to curb the spread of the coronavirus pandemic, which has pushed the economy into a standstill and forced many businesses to trim operations.
“Unfortunately, the COVID crisis continues to unfold all around us causing unprecedented economic and social destruction. The world is not going to revert to the pre-COVID era anytime soon,” Aggarwal wrote in the note.
The Ola CEO said the one-time exercise will be completed by the end of this week for the company’s mobility business in the country, and by the end of next week for Ola Foods and Ola Financial Services. “No more COVID-related cuts will be done after this exercise,” he said.
Ola will give a minimum financial payout comprising three months of fixed salary to the affected employees, irrespective of the notice period.
The departing employees will be able to continue using their medical, life and accident insurance cover, and medical insurance cover up to Rs 2 lakh for parents till December 31, according to the company note.
The company said its lease rental waivers have provided relief of up to Rs 25,000 per month to more than 30,000 driver-partners, and zero-interest loans through its Ola Sahyog initiative provided support to more than 2 lakh families.