Ola Cabs: Firing 1400 employees due to the falling revenue
Ola cabs have come up with the decision of firing 1400 employees because of the dip in revenues in the past few months. The COVID-19 Pandemic has adversely affected the business of many travel-related sectors.
Firing 1400 employees- Something to panic about?
Ola has announced today that they have fired 1400 employees because of the low business in the past 2 months. In the past 2 months, Ola’s business had been reduced by 95% which has made the management to take such a decision.
Ola CEO Bhavish Aggarwal has stated that the business has become very uncertain. He also said that the impact of this crisis will take a big hit upon them. He said that this is a onetime exercise and there will not be any COVID-related cuts after this. He further said “…people are not going to Pre-Covid period anytime soon. It will take a long time and everyone has to follow safety measures and social distancing t0 protect themselves”.
Aggarwal has said that the affected employees will receive 3 months salary irrespective of their notice period. The employees can use their medical and accident cover up for themselves and their families till 31st December 2020.
Platforms like Ola, Uber are facing ultimate losses because they hardly have any business. This pandemic is forcing many companies to cut down their resources and operations. In lockdown 4.0, cab rides have been allowed in several cities where regulations are eased. Uber services are available in 40 cities, and Ola services are available in over 160 cities.
The lives of such employees are already in a miserable state as they lack their daily income without frequent rides. The continuous layoffs in various companies are so terrorizing and everyone is so concerned about not losing their jobs. Among all the industries, the ride-driven industry is facing a serious hit which will require a long time to mend.
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