Covid-19 Lockdown Takes its Toll on Businesses: Forces Major League Companies To Reduce Workforce
The present COVID-19 pandemic has turned out to be a never-seen-before global pandemic and has started to affect the business sphere in addition to the public health The sudden unprecedented lockdown has completely depleted the demand in the markets.
As a result, most companies and manufacturing units have shut down their operations with several of them facing imminent bankruptcy. This has forced several major league companies to take the decision of large scale employee layoffs to cut their operational costs and stay afloat in the market. Here are some of the big players that have had to reduce their workforce by a significant amount.
List of Companies Laid Off Employees:
The list of companies assigning laid off to their employees in this pandemic is very vague. The latest company to enter this list is the platform offering tickets for movies and entertainment. The managing team of this firm has stated that the impact of this pandemic will be witnessed by 270 employees out of their total workforce i.e, 1450.
This firm is in the field of providing financial service to customers. Without any prior notice, their management team asked over 2000 employees to resign from their post and that too over a WhatsApp call.
This firm came into existence recently and during this scenario of COVID -19 they are laying off around 1,100 workers to reduce their cost and increase the profitability of the firm.
But the managing team has decided to give the workers their payrolls of three months and health insurance. Even the firm is helping the employees to get placed.
Zomato is a food-delivery firm and due to this current situation, they have planned to lay off in a total of 13% of their employees and have even announced pay cuts for the entire firm. But they have promised to take care of the financial status of the employees and even help them in getting placed.
Ola offers a wide range of services ranging from food, financial services to mobility. Recently the CEO of this firm has announced that in total 1400 employees would be laid off taking into consideration the present and future scenario of the work environment. But he has even assured that irrespective of the prior notice they will give complete payrolls of the laid-off employees for 3 months.
This firm was a start-up designed by Fintech. The HR of this firm has personally contacted over 200 employees and has asked them to give their resignation letter, mentioning in it their personal issues for leaving the job.
It is a B2B business platform and this pandemic they have laid off over 3500 local contractors and as compensation, the firm has paid one month salary to their contractors.
- Share Chat
In this COVID-19 the regional language social media platform has announced to lay off one-fourth of their total employees. In a mail CEO Ankush Sachdeva stated that “today with the market uncertainties due to COVID-19, we are compelled to take a relook at our business. We have had to make a few decisions that would allow us to become leaner and position the company better for the future”.
Home design startup Livspace has reportedly laid off 450 employees, which is around 15% of its workforce as the lockdown had an adverse impact on its business.
This came after the founders said that they will forgo their annual salary and the leadership team gave up annual bouses.
Used car platform CarDekho has reportedly laid off over 200 employees as the automobile sector takes a major hit not just due to COVID, but also due to the economic slowdown over the past year.
Earlier in April as well, several startups laid-off employees, including Bounce, Treebo, among others.
The bike-rental startup reportedly laid off 20% of its staff, who mostly belonged to mid and senior levels as a measure to cut costs. It also instituted pay cuts between 20-60% for employees, while founders took a 100% cut in pay.
- Travel Triangle
The holiday package marketplace laid off 250-300 people, reported Entrackr. The report added that many were not paid severance.
- Fab Hotels
The budget hotel chain laid off over 100 employees due to hardships caused by COVID-19,
PTI reported that the budget hotel chain laid off over 100 employees as part of a ‘resource optimization’ exercise across operations, tech, sales and supply acquisition teams
The insurance technology startup laid off around 45-50 employees, while the top management took pay cuts of 45-70%.
The social commerce copy reportedly laid off around 200 employees.
The app-based office commute service reportedly let go of 40 people and asked 100 people to resign voluntarily.
Clothing and retail major Raymond has reportedly let go of around 700-1,000 employees. An employee took to Reddit to claim that the company was forcing employees to resign. However, the company has denied reports of any layoffs.
As Cure.fit moved to a digital fitness model, the company downsized its employee base across cities it is present in and also closed some operations in tier 2 cities. While the company didn’t divulge how many were laid off, as per reports and estimates of employees, over 800 employees lost their jobs. These included trainers, the management staff at centers, employees of its food business, among others.
Co-working major WeWork India has said that 20%of its staff will be let go as companies continue to work from home, impacting the revenue of the company.
In an email, Karan Virwani, CEO, WeWork India, said that the company needs to make fundamental changes to the company by streamlining its workforce around a more focused business strategy which would entail a reduction of its workforce across different roles by around 20 percent.
Noida-based edutech company Extramarks Education has laid off around 1% of its total workforce of 5000 employees as the pandemic affected its business, resulting in it having to shut down its coaching centers.