Coronavirus impact: MakeMyTrip's founders to draw zero salary; top brass to take 50% cut
BusinessToday.In March 26, 2020
MakeMyTrip's co-founders Deep Kalra and Rajesh Magow have announced that they will be taking zero salaries from April. They also said that the leadership team at MakeMyTrip will be taking a 50 percent salary cut. MakeMyTrip's decision comes at a time when the entire tourism and travel industry has ground to a halt due to coronavirus outbreak.
MakeMyTrip has said that it has started reviewing the company's expenses. The company has been sharply reducing variable costs like advertising and marketing and doing cost-cuts in expenses relating to the functioning of its offices and other establishments.
According to the Times of India, Kalra and Magow in a letter to all MakeMyTrip employees said, "Being an online company, the majority of our costs are variable. However, the situation demands that we take a hard look at all fixed costs, including people costs."
According to the company's filings, MakeMyTrip had a total of 3,450 employees on its payroll as of March 2019.
MakeMyTrip said that their business has stagnated due to fall in bookings and cancellation of flights because of the coronavirus pandemic. In Q3 of FY20 MakeMyTrip's losses had halved to $11 million owing to a gross bookings jump of 19 percent in that time period. However, since late February it started seeing a steep fall in its bookings.
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