In an email to his employees today, Ola CEO Bhavish Agarwal cited the downsizing of the workforce by 1400 employees.
Ola’s revenue slashed down by 95% in the last 2 months as Covid19 hit the worst in the travel industry.
“Over the past couple of months, all members of our extended leadership team have taken significant salary cuts to be able to help the organization delay tougher people decisions as we waited for the situation to evolve. But unfortunately, it’s not been a short crisis. And the prognosis ahead for our business is very unclear and uncertain. It is going to take a long time for people to go out and about like before.” Bhavish said in an email to his employees.
He also said that “This will be a one time exercise and will be complete by the end of this week for our India Mobility business and by the end of next week for Ola foods and Ola Financial Services. No more COVID related cuts will be done after this exercise,”
Cab aggregators were banned after the government implemented a nationwide lockdown from March. Even as relaxations have come in now, operations of cab aggregators continue to remain suspended in metros such as Mumbai.
“This is an opportunity for us to envision a new future of safe, efficient, and clean mobility, and recommit ourselves towards building this future. As I mentioned, we will be increasing our investment into R&D and innovation in this period and pursuing our dreams and ambitions with even more determination,” Bhavish added in his mail.
Like many other startups, Ola also is taking care of the outgoing employees by a number of initiatives in financial, healthcare, emotional, and career-support.
Let’s hope for a better future for the Indian job market and economy.