Now-a-days, startups are laying off jobs, delaying promotions, and employee bonuses have taken a backseat due to the recession in the economy.
Amid the COVID-19 crisis, people are more worried about remaining employed, more than anything else.
The Indian startup ecosystem is facing the brunt of this economic slowdown.
While the “quarantine economy” has promoted the use of video conferencing platforms like Skype and Zoom, to make the most of these tools, a strong internet connection is mandatory and not everyone is blessed with one.
Dewaker Baset, Founder of Gangtok-based educational travel startup Invacations, says, “Mobile networks are not great in the hills and the odds of coordination are more for us. Remotely working is not as smooth as working from the office is.”
Dewaker also feels that the travel industry is going to face a setback for the next six months. “We had established certain targets; those have been shattered. It is like starting a business from ground zero,” he says.
FareFirst, a Kannur-based travel startup, has a similar opinion. CEO Yajnesh T says the travel industry is facing the maximum burn. The startup’s monthly flight searches have gone down from 4.5 lakh to almost nil. “We will not be able to survive the next three months unless we do a pivot,” Yajnesh says.
Companies like LegalWiz is keeping unnecessary expenses in check, and shrinking its marketing budget.
ExpertRight reports that there has been a decline in the demand for freelance writers in the hospitality and travel industry.
Despite the turmoil, Biofie, which uses video resumes and AI-powered matching processes to make the job search and hiring process efficient, has seen more traffic on its website, from the applicant side.
“People have more time to think about and explore newer opportunities. Most of us tend to delay the job searching process because we are busy, but being at home, people seem to be more interested,” Biofie Founder Mrityunjay Sharma says.
Therefore, we can say that where on one hand companies are laying off jobs and experiencing a recession, on another hand they are experiencing new opportunities to grow their business.