BookMyShow has joined the list of companies shedding workforce due to unfavourable business environment amid the coronavirus pandemic in India. The movie ticket booking platform has reportedly laid off or furloughed 270 employees (around 18 per cent) across its offices in the country. Others have faced 10-50 per cent salary cut, depending upon their level in the company. Ashish Hemrajani, CEO of BookMyShow, in an email to the employees said this was "uncomfortable, unfortunate yet inevitable" situation, and that none of this was based on workers' quality of work.
"Today, we are at the stage where I have to share with you, the uncomfortable, unfortunate yet inevitable downsizing exercise that we have to take due to the unfavourable environment. None of these decisions reflects the quality of the work that any of these team members have put in," Hemrajani wrote.
The company has forwarded medical insurance to employees and their families till September 30, and gratuity and other benefits to the laid off or furloughed employees. The employees have also been given severance equal to two-month salary. Those asked to leave the company will also get a certification from the company, highlighting their skills.
Hemrajani said the decision to let people go was taken after exhausting all options and cutting all other expenses and renegotiating with vendors, partners and landlords.
The economic slowdown has forced several companies to let people go in the face of mounting losses due to lockdown. As per an estimate, the film industry, particularly, is losing around Rs 90 crore a day due to restrictions of movie theatres and film exhibition.
In other sectors too, companies are on firing spree to cut expenses as there's little clarity on how businesses would turnout in future. French carmaker Renault today announced 15,000 layoffs worldwide. Cognizant is planning to lay off around 400 executives in the ranks of directors, senior directors, associate vice presidents, vice presidents. Indiabulls has asked nearly 2,000 employees to resign as part of its "annual attrition cycle". Ola and Uber both have fired 1,400 and 3,000 employees, respectively.