Bengaluru-based, Udaan, B2B commerce online startup has laid off several employees working on a contract basis as the company’s non-essential business has been shut due to the nationwide lockdown in the wake of the COVID-19 situation.
Udaan is an online marketplace that facilitates buying and selling fashion products, groceries, and electronics among manufacturers, brands, and retailers.
The company said, “With the economy showing no or very weak growth signs for at least the next eight-ten months, operating costs have to be recalibrated,”
The company has confirmed the job cut, while declining to disclose the number of employees impacted. Udaan also said that each associate who has been impacted is provided with additional compensation of one month and will be part of the priority hiring list where they would be given preference to join Udaan when a relevant opportunity exists within the system.
The company added, the associates affected and who are covered under Udaan’s medical insurance scheme will continue to get medical insurance benefit for an additional period of 3 months.
The employees who have been laid off were intimated by the decision directly from Udaan’s consulting firms on April 24.
While on his termination, one of the employees tweeted that Udaan terminated us without any due notice or information and the reason being business challenges and cost-cutting. We wanted to work for Udaan for a longer-term period but Udaan terminated us. This is really bad.
Udaan terminated us without any due notice or information and the reason being business challenges and cost cutting. We wanted to work for Udaan for a longer term period but Udaan terminated us.This is really bad. @tv9kannada @EmployeesUdaan @BlrCityPolice @narendramodi @amodm https://t.co/m3LAL68XqZ
— Abhigyan Sinha (@AbhigyanSinha8) April 25, 2020
However, the company, said it would honour all campus placements and pending job offers. “We are adapting to the structural changes in demand in India which is impacting our current infrastructure … Driven by economies of doing business in a sustainable manner, we are compelled to restructuring our teams which has unfortunately made some roles redundant,”
Udaan’s management has not taken a decision on laying off permanent employees, company said.
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