Treebo asks its employees to resign voluntarily as Covid-19 hits the travel industry

• In a LinkedIn post, the co-founder Rahul Chaudhary said that Treebo has taken the decision to reduce their fixed costs.
• He added that some of the employees have opted for the scheme already and they are finding outplacement opportunities for them currently.
• Backed by marquee investors like SAIF Partners and Matrix Partners, Treebo had also raised funding in January 2020.

Travel startup Treebo has rolled out a paid voluntary resignation scheme for its employees. In a LinkedIn post, the co-founder of Rahul Chaudhary said that Treebo has taken the decision to reduce their fixed costs.

Chaudhary said that he wants “to provide the right opportunities for our highly valued colleagues.”

He added that some of the employees have opted for the scheme already and they are finding outplacement opportunities for them. “These are exceptional individuals with skill sets across sales, business development, sales operations, HR, finance,” he wrote.

Earlier, the startup had partnered with Paytm to provide accommodation to healthcare professionals who are frontline workers during the Covid-19 crisis.

Backed by marquee investors like SAIF Partners and Matrix Partners, Treebo also raised funding in January 2020. According to reports, Treebo raised ₹3.25 crore from media conglomerate Bennett Coleman & Co. (BCCL).

However, last July, Treebo had fired over 100 employees as a cost cutting measure. According to an ET report, the company had then blamed a ‘large funding’ that fell through as the reason for the step.

Treebo competes with FabHotels and OYO in the hospitality industry.

The travel industry is one of the top three verticals to be heavily hit by the pandemic, along with aviation and hospitality. A report by the World Economic Forum said that the World Travel and Tourism Council warned that the coronavirus pandemic will result in 50 million job losses globally.

“Asia is expected to be the worst affected. Once the outbreak is over, it could take up to 10 months for the industry to recover,” said the report.

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