India-largest travel aggregator MakeMyTrip has laid off 350 employees or 10 per cent of its staff due to the COVID-19 impact. Most of the fired employees of the Gurugram-based travel company are on international holidays and related line of business. MakeMyTrip founder Deep Kalra and CEO Rajesh Magow in a letter to their employees state that it was unclear when the travel industry which has been one of the most badly hit sectors will come back to normalcy. The company is offering mediclaim coverage to the impacted individuals and families until the end of 2020.
MakeMyTrip Lays Off 350 Employees
The coronavirus pandemic and the subsequent lockdown to contain it badly affected the travel and tourism industry. In order to sustain the company, MMT fired 350 if its employees, or 10 per cent of its staff. In an email to employees on May 29, Deep Kalra and Rajesh Magow state that as times remain unpredictable it’s evident that the impact of the coronavirus crisis will be long drawn for the company. This is because the travel and tourism industry is one of the most badly affected sectors of the economy. They added that its unclear when travelling would come back to normalcy like it was during pre-COVID.
Kalra and Magow state in the letter, “As we revisited some of our strategic imperatives to be able to sustain our business in the long term, it is evident that the pandemic has changed the context and viability of some of our business lines in its current form. Keeping this in mind we have had to take this sad but inevitable decision of rightsizing our workforce.”
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Mediclaim Coverage Given To Laid Off MMT Employees Till End Of 2020
The letter appreciated the contributions of the laid-off staff towards MMT. The company is offering leave encashment, gratuity, retention of company laptops, outplacement support and salary payment as per their notice periods. Apart from this, MMT is also offering mediclaim coverage until the end of 2020 for the individuals and their families who have been impacted by this decision. Survey Says 93% Indian Employees Are Stressed About Returning Back To Office Post Lockdown
Deep Kalra and Rajesh Magow state that this is undoubtedly the toughest decision they took so far. They also said its the saddest day for them as an organization. The decision to lay down employees in MMT comes months after the online company slashed salaries of 3000 employees.
Deep Kalra and Rajesh Magow themselves admit to taking zero salaries from April onwards. The leadership team of MMT also took a 50 per cent salary cut. The NASDAQ listed company witnessed a fall in its share prices by 32.9 per cent since the beginning of 2020. Apart from the MMT group, the online travel startup Travel Triangle also fired 250 of its 600 employees in March due to the impact of the pandemic. For now, 100% Government Employees To Work From Office Starting 14 June
First Published: June 02, 2020 3:57 PM