Due to the prolonged lockdown in the wake of the COVID-19 outbreak in the country, the start-ups have had to resort to lay-offs and even pay cuts. Some of the founders have reportedly taken a 100 percent pay cut for a year.
Many start-ups that rely on the mobility of people, the community interactions with the people have been forced to stay out of functioning. There is also uncertainty about the time when the business resumes. Here’s the list of how major start-ups were impacted.
Earlier last week, the hotel chain company announced that some of its employees will be laid off for a period of four months and all other employees except those who earn 5 lakh and below will be accepting a 25 percent cut in their salaries. OYO’s leadership will also be taking a cut of 25-50 percent while founder Ritesh Agarwal has received a 100 percent salary cut for the rest of the year.
Swiggy announced that they will be laying off employees from their cloud kitchens. This is expected to affect 500-900 people. Swiggy’s cloud kitchen partners include companies like The Bowl Company and Homely. Swiggy also clarified that the ones to be laid off are the low performers.
The online grocery company has already laid off 70 percent of its employees for a period of three months from their offline sales and beauty departments. Despite attempting to absorb the employees until 38, they have given a pay cut of 33 percent to the remaining laid-off employees.
The bike rental service company has reportedly laid off its 20 percent of staff in mid and senior-level positions in order to cut costs. While the founders accepted a 100 percent cut, the remaining staff is likely to see cut between 20-30 percent.
As per Entrackr, the travel company has laid off 200-300 of its employees that is paid severance.
The budget hotel company has launched a voluntarily paid resignation scheme after the bookings were severely hit. If the employees agreed to resign voluntarily, they would be getting one month salary up to 30,000 rupees with their notice period waiving off.
According to reports, it laid off over 100 employees terming it as ‘resource optimization’. Pay cuts are also in place. While the founders took a 25 percent pay cut, employees earning more than 25,000 took 20 percent and others with 15 percent.
Until the business is on track, the founders have waived off their salaries, the leadership is taking a 60 percent cut while other employees are taking a cut between 20-50 percent.
The payment gateway company, apart from laying off employees due to COVID-19, has also instituted pay cuts across departments of about 10-40 percent with the founders accepting a 40 percent pay cut.
Over 10 percent of employees were laid off by the insurance technology company along with pay cuts of 40-50 percent.
The social commerce company has reportedly laid off over 200 employees.
The office commute service company has fired 40 people and asked others to voluntarily resign.
Source: The News Minute