MakeMyTrip will be laying off 350 employees, as the Covid-19 impact on travel continues to hurt the travel industry.
Hospitality, restaurants, events and travel are among the most impacted businesses because of the Covid-19 pandemic and the associated shutdowns. On March 24, MakeMyTrip said it was reviewing its operating costs and a hard look at all our fixed costs including people costs. The company cut down variable costs like advertising, sales promotions, payment gateway costs. It even optimised IT infrastructure and expenses relating to the functioning of its offices and other establishments.
What did the key leaders have to say on this matter?
Rajesh Magow, CEO, in an email to employees:
Over the past two months, we have analysed the impact closely. We have spent considerable time thinking about the path to business recovery. As a result, it’s become clear that there are certain lines of business that are deeply affected. These lines will take much longer than the others to recover. As we revisited some of our strategies, it is evident that the pandemic has changed the context and viability of some of our business lines.
What will the MakeMyTrip employees get?
The company will provide the following to the laid-off employees:
- Mediclaim coverage for individuals and their families till the end of the year
- Leave encashment, gratuity, retaining the right to exercise part of restricted stock units as applicable
- Retention of company laptops and outplacement support apart from salary payments
The exercise makes MakeMyTrip the latest among high profile firms which have either laid off or furloughed their employees. Oyo, Uber, Zomato, Swiggy are some of the large firms who underwent restructuring exercises. These are due to the pandemic relates shutdowns continue to impact businesses.