Ola will be laying off over a thousand of its employees, the cab aggregator’s CEO Bhavish Aggarwal said in an email to staff today. “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 1400 of our valued employees,” Aggarwal said. “No more COVID related cuts will be done after this exercise.” Most startups have been taking a hit in revenue, with some struggling to survive beyond the next few months, as the COVID-19 pandemic’s recession roils the world economy. 40% of startups surveyed by NASSCOM have halted business entirely, with 53% cutting pay for employees.
Laid off employees will receive the following benefits, according to Aggarwal:
- 3 months of salary as severance, with additional payouts based on an employee’s tenure
- ESOPs vested for the nearest quarter, with pro-rated vesting for employees who have been on board for less than a month
- Medical insurance for employees’ parents or in-laws until the end of 2020, or when they start their next job
- Telemedicine support for employees through third party partnerships till the end of the year
- Outplacement support to get a job elsewhere
Swiggy has similarly laid off 1,100 employees, while Zomato let go of 13% of its entire workforce. Ola rival Uber laid off over 3,700 employees, and is reportedly planning to announce layoffs for 500–700 employees in India.