Ola fires 1400 people as revenue is hit by 95% in the last two months
- Ola has fired 1400 people as a cost cutting measure during the coronavirus pandemic.
- In an email to employees,
OLA CEO Bhavish Aggarwalsaid that the pandemic has hit Ola’s revenues.
- Aggarwal added that the impact of the crisis will be long-drawn for Ola and the world is not going to revert to pre COVID era anytime soon.
AdvertisementIndian ride hailing unicorn Ola has fired 1400 people as a cost cutting measure during the coronavirus pandemic. In an email to employees, OLA CEO Bhavish Aggarwal said that the pandemic has hit Ola’s revenues.
“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,” said Aggarwal.
Aggarwal added that the impact of the crisis will be long-drawn for Ola. “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 wrote.
Every affected employee will receive a minimum financial payout of 3 months of their fixed salary, irrespective of the notice period.
Aggarwal added that during this time period, they will be investing in Research and Development.
"As economic activity returns, so will the need for mobility, but the paradigms will have changed. This crisis is accelerating macro trends of digital commerce and clean mobility, and our businesses are well-positioned to leverage these macro trends well," he wrote.
Ola’s news comes soon after global ride hailing app Uber has laid off over 6,000 employees while closer home unicorns like Swiggy, Zomato have laid off thousands of employees.
The ride hailing business has been severely affected as for over two months now cab services had been suspended. With Lockdown 4.0, Ola had resumed services in over 160 cities on May 19.
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