Travel company MakeMyTrip that has been severely hit by the coronavirus pandemic has decided to lay off 350 employees. MakeMyTrip founder Deep Kalra and CEO Rajesh Magow said in a letter to the employees that the pandemic has changed the context and viability of some of their business lines. He added that it has now become unclear as to when travel would become a way of life as it was before the pandemic unfolded.
"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," the letter read, as mentioned in a report in CNBC-TV18.
MMT's letter to the employees said that they are "truly appreciative" of all the work the employees have put in for the organisation. The letter underscored the need for staff rationalisation and said that it is necessary to map the future business strategy of the company, adding further that this is not a reflection of the work done by the people. "We wish them only the very best for what follows from here, and we thank them deeply for their rich contribution to Go-MMT," stated the letter.
The company is offering mediclaim coverage for individuals who have been impacted as well as the families till the end of the year. MakeMyTrip is also offering leave encashment, gratuity, retention of company laptops as well as outplacement support.
Both Kalra and Magow have not been taking salaries since April and the rest of the leadership team had also taken 50 per cent pay cuts as measures to keep the business afloat.
MakeMyTrip is the latest company to have announced lay offs in order to keep business running. Travel, aviation and hospitality industries are some of the worst affected. In fact, a recent report by BOTT Travel Sentiment Tracker in partnership with seven national associations like IATO, TAAI, ICPB, ADTOI, OTOAI, ATOAI and SITE said that 81 per cent travel and tourism companies have lost their revenue up to 100 per cent while 15 per cent of the companies have witnessed it slide up to 75 per cent. The report stated that around 40 per cent travel and tourism companies stare at risk of complete shutdown over the next 3-6 months.