This Is Why Yatra Is Firing 400 Employees; These Travel Companies Are Also Firing Employees
As per reports coming in, India-born travel portal Yatra is firing 400 employees. They had placed around 600 employees on leave without pay earlier.
What is the reason Yatra is firing employees?
And which are the other travel-based firms which are firing employees?
Why Yatra Is Firing 400 Employees
Last year, travel behemoth Ebix had announced that they will acquire Yatra for $330 million, and at that time, it was hailed as of one of the biggest deals in the travel sector.
But now, Ebix has backed-off from this deal, and leaving Yatra with no other option but to reduce staff strength to survive.
This is the reason Yatra is firing 400 employees, after putting 600 employees on leave without pay.
Yatra’s business fortunes were stumbling even before the coronavirus epidemic hit India, and now, as the travel industry is at a stand-still, Yatra has admitted that several of their business verticals will take more time to recover.
International travel is one of the biggest segments which has taken a hit on Yatra’s revenues, and the company doesn’t see any recovery soon.
Customer support jobs are also being terminated since there is little requirement for any support now.
Yatra has already filed a case against Ebix for backing-off from their commitment.
These Travel Companies Are Firing Employees
Yatra is not alone in terminating employees as a means to survive.
Yatra’s closest competitor in India: Make My Trip has already fired 350 employees due to slowdown in business after the lockdown and Covid-19 epidemic.
TravelTriangle has fired around 300 employees.
Thomas Cook is firing 1000 employees, and out of them, 350 were fired last month.
Other travel-related startups such as Treebo, Oyo, and Fab Hotels have also fired tons of employees to stay afloat.
We will keep you updated, as more details come in.