CEO Bhaivish Aggarwal, in his email to staff, confirmed that the startup’s revenue is down by 95% in the last two months due to the nation-wide lockdown and restrictions.
Mumbai| Ola joined the other companies on Wednesday which announced large-scale layoffs in the light of the Covid-19 pandemic. CEO Bhaivish Aggarwal, in his email to staff, confirmed that the startup’s revenue is down by 95% in the last two months due to the nation-wide lockdown and restrictions on the movement. India today accessed the email and reported it.
Agarwal made it clear that the organization has decided to downsize its operations and it involves letting go of 1400 employees of the company.
“Ever since my last email to you six months ago, I had hoped to write soon in better times. Unfortunately, the Covid crisis continues to unfold all around us causing unprecedented economic and social destruction,” Agarwal said at the beginning of his email.
“In these circumstances, today I write to all of you with the toughest decision I have ever taken. The need to downsize our organization and let go of 1,400 valued employees,” he further added.
He also accepted that the plans of the companies have been hit hard by the prevailing Covid-19 crisis and that the future of the business looks “uncertain”. He said that it will take a long time for people to go out like they used to before the pandemic.
“The impact of this crisis is definitely going to be long-drawn for us,” Agarwal added.
Listing all that the organization has done for its drivers, he said, “We have done everything in our means to support those around us in these difficult circumstances.”
“The downsizing exercise has been very tough and sad for the entire management team.”
The coronavirus crisis has hit hardly many startups in the sectors ranging from food to auto.
Experts expect a slow recovery for Indian businesses as the economic stimulus announced does very little in context of providing direct support to cash-starved companies and startups.