Recently, Ola, Uber and Swiggy have laid off their employees. Now, MakeMyTrip has also put its employees on furlough. The company has laid off 350 employees because of the decimation faced by the company. The revocation message to the impacted employees were sent via email.
Deep Kalra, Executive Chairman of MakeMyTrip Group, informed, “Over the past two months, we have analyzed impact closely and have spent considerable time thinking about a path to business recovery. As a result, it becomes agonizingly clear that there are certain lines of business (LOBs) that are far deeply affected and will take much longer than the others to recover as we revisited some of our strategic imperatives to be able to sustain our business in the long term. Keeping this in mind we have had to take this sad but inevitable decision of rightsizing our workforce.”
The company has promised to cover Mediclaim to the impacted employees and their families till end of this year, leave encashment, gratuity, and retain the right to exercise part of the restricted stock unit (RSUs) as applicable.
Compassionately, MakeMyTrip has allowed employees to keep the company’s laptop and will be providing outplacement support from salary payments as per their notice period. In the month of March, ‘zero salary’ was opted by the top executive of the company – Deep Kalra and Rajesh Nahi – from April 2020 whereas 50% voluntary pay cut was opted by its team leaders.
All the comparables of MakeMyTrip such as Goibibo and redBus had made an announcement for salary cut in the same month to sustain their business for the long term. In the travel and hospitality sector, many firms have implemented salary cuts or laid offs to deal with the current crisis. TravelTriangle has clogged half of its workforces or say dismissed 300 employees in the month of March.
With effect from May 4, voluntary leave was opted by some employees of Oyo with limited benefits. Although, the company is not in the favour of job cuts in the country. FabHotels too has axed its 80 employees and cut salaries of the entire workforce in the month of April. Following this, Treebo has also put around 100-200 of its employees on furlough.