The COVID-19 outbreak and the ensuing travel ban impacted the aviation as well as the travel and hospitality industries severely across the globe. Online travel aggregator, MakeMyTrip, is laying off 350 employees as its business has taken a severe hit. The decision was communicated to the employees via an official letter from Deep Kalra, CEO, MakeMyTrip.
With no certainty as to when traveling will be get back to normal, the Company has taken this step to sustain its business in the long term.
As per media reports, a Company spokesperson confirmed that the lines of business impacted are international holidays and related operations.
As per the letter, MakeMyTrip is trying to map its future business strategy, and therefore downsizing its workforce.
“As we revisited some of our strategic imperatives to be able to sustain our business in the long term, it is evident that the pandemic has changed the context and viability of some of our business lines in its current form. Keeping this in mind, we have had to take this sad but inevitable decision of rightsizing our workforce,” reads the letter.
While the Company has appreciated its employees for their valuable contribution to its growth over the years, it has also pointed out that the move to shrink the workforce is in line with its future business strategy. It clarified that the layoff has nothing to do with the performance of the employees.
Each of the 350 employees impacted will receive severance packages including medical cover for her/his own self as well as their families till the end of the year. In addition to salary payments, in accordance with their notice periods, the package also includes leave encashment, gratuity, the right to exercise part of the restricted stock units (RSUs) as applicable, permission to retain the Company laptops, as well as outplacement support.
MakeMyTrip has partnered with over 30 key leaders from the airline, hospitality and other related industries to create a safety pledge. The objective is to soothe the frayed nerves of travellers and win back their confidence.
In March, the online travel booking firm’s top executives and employees had decided to forego their salaries as the Company had not seen any business since the lockdown.
The employee strength of MakeMyTrip stood at around 3,000 till FY19-20.
Value our content... contribute towards our growth. Even a small contribution a month would be of great help for us.
Since five years, we have been serving the industry through daily news and stories. Our content is free for all and we plan to keep it that way.
Support HRKatha. Pay Here (All it takes is a minute)