Ola has announced the plan to conduct a mass lay-off, affecting around 1,400 of its employees
The decision comes in light of the COVID-19 pandemic, which has resulted in lockdowns that have drastically affected the whole cab-aggregation business of the company.
In a company blog post written by the CEO Bhavish Aggarwal, the co-founder of Ola Cabs, made it clear the impact of the ongoing COVID-19 crisis on the company and announced the mass-layoff. The company has decided to downsize and “let go” of 1,400 employees.
“The fallout of the virus has been very tough for our industry in particular. Our revenue has come down 95 per cent over the past 2 months. Most importantly, this crisis has affected the livelihoods of millions of our drivers and their families across India and our international geographies,” he said.
“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,” he noted in the letter.
Bhavish said the impacted employees will receive a minimum financial payout of 3 months of their fixed salary, irrespective of the notice period. Employees who have spent significantly more time with us will be eligible for higher payouts depending on tenure.
Also, all eligible ESOPs will vest forward to the closest quarter and for those who may not have completed a year, as an exception, Ola will enable pro-rated vesting for the period of time spent with the company, he added.
“All affected employees will be able to continue using their medical, life and accident insurance cover for themselves and their families up to December 31, 2020, or the start of their next job whichever is earlier, to help minimize the financial burden of health and other risks in a time like this,” he said.
Ola has also decided to offer medical insurance for up to 2 parents (or in-laws) to each employee. This insurance will cover parents for all pre-existing ailments up to the age of 90, for a sum of Rs 2 lakhs.
“While we have made every possible effort to accommodate as many affected team members in open roles in our other group companies, we are rallying the support of the Ola Talent Acquisition team to help with outplacement support for as many people and in helping find suitable roles for them outside of Ola,” he said.
In addition to this, we are also allowing all company-issued laptops (primary work devices) to be retained by affected employees, he added.
As closing remarks, Bhavish wrote, I’m filled with a lot of emotion and sadness as I write this email, but also with strong hope and resolve to rebuild our business, and create the future that we envision, together.
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