Ola Fires 1400 Employees As Business Down By 95%; But This Is Their Last Layoff
India-born online cab aggregator Ola has announced that they are firing 1400 employees, as their business is down by 95% in the last two months.
Ola has declared that this shall be their last layoff, due to coronavirus.
Ola CEO: We Are Firing 1400 Employees
Ola co-founder and CEO Bhavish Aggarwal has sent a letter to all employees, wherein he has said that due to slowdown in business, 1400 employees are being fired.
The reason is slowdown in business due to the coronavirus impact.
Bhavin said, “The fallout of the virus has been very tough for our industry in particular. 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.”
The layoffs will first start for their cab business, and then next week, employees from Ola Foods and Ola Financial Services will be asked to leave.
Every employee who is being fired will be provided with three months salary, irrespective of their notice period. And all medical related benefits such as medical, life and accident insurance cover, and medical insurance cover up to Rs 2 lakh for parents will be valid till December 31.
This Will Be Ola’s Last Layoff
CEO Bhavin has made it clear that due to the coronavirus impact, and its subsequent slowdown, this will be their last layoff.
He said, “No more COVID-related cuts will be done after this exercise,”
Bhavin also informed that they have been helping their drivers, wherever it was possible.
For more than 30,000 drivers who had taken cabs on lease from Ola, Rs 25,000 relief per month has been provided.
Besides, around 200,000 families of Ola drivers have been provided with zero interest loan called Ola Sahyog to cope with the daily expenses during these testing times.
He added, “While nothing can take the emotional trauma away for those of our colleagues who will be leaving, we have tried to bring together a comprehensive benefits plan that will ensure that every single team member affected is given maximum support on all fronts – financial, healthcare, emotional, and career-support.”
You can find the full letter here.