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Zomato, Grofers, Ixigo restore salaries to pre-COVID-19 levels

During the three-month lockdown period (April-June), several of these companies even issued additional employee stock options to employees, in lieu of the salary cuts owing to the economic crisis triggered by the pandemic-induced lockdown

twitter-logoBusinessToday.In | July 21, 2020 | Updated 14:07 IST
Zomato, Grofers, Ixigo restore salaries to pre-COVID-19 levels
Internet companies such as Ixigo, Grofers, UpGrad, and Zomato have rolled are reinstating salaries slashed in the April-June quarter

Some Indian startups have started restoring salaries pre-coronavirus levels. Many of them had announced pay cuts earlier after coronavirus lockdown dried up cash flow. Internet companies such as Ixigo, Grofers, UpGrad, and Zomato have reinstated salaries slashed in the April-June quarter. This comes as the country's economy is beginning to open up gradually.

Meanwhile, other e-tailers, such as Snapdeal, are running operations at pre-COVID-19 levels and have also reinstated bonuses and rolled out increments, The Economic Times reported.

During the three-month period (April-June), some companies had issued additional employee stock options to employees, in lieu of the salary cuts owing to the economic crisis triggered by the pandemic-induced lockdown.

Also Read: 25% of startups face serious challenges if coronavirus remains for long, says expert

Confirming the salary restoration, Albinder Dhindsa, co-founder of Grofers, told the news daily that the online grocery platform had earlier been "conservative because of the uncertainty in operations" but that "seems to be stable now". He added that the Gurgruam-headquartered company "reinstated salaries from July 1".

Dhindsa further stated that the SoftBank backed online platform had furloughed around 50-70 of its employees in April.

Online food aggregator Zomato's CEO Deepinder Goyal in his July 10 blog post stated that original salaries have been reinstated, while travel app Ixigo has also restored salaries to pre-cutback levels since July.

The online travel operator's CEO Aloke Bajpai told the news daily that the company witnessed a "pent up demand" initially after the lockdown restrictions eased and flights began to resume.

Also Read: Coronavirus impact: Desperate startups seek govt help on salaries, loans

He highlighted that the demand was "more than we anticipated" but it would not come down from a particular level, thus, the company "decided to bring back salaries to the February level."

Homegrown e-commerce major Snapdeal, effective June 1, started rolling out increments for its around 700 employees. However, the company did not divulge any details about whether its furloughed employees, some of whom have been called back to work, have benefitted or not.

Snapdeal had in May furloughed around 7% of its full-time employees and did not renew contracts with approximately 800 of its contractual employees.

Also Read: Startups cut jobs, salaries as coronavirus impact businesses

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