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Covid-19 impact: Ola lays off 1400 employees as company faces 95 per cent revenue hit

Ola has decided to lay-off 1400 employees after its revenue fell by 95 per cent in the last two months. It will support impacted employees financially for 3 months.

twitter-logoYasmin Ahmed | May 20, 2020 | Updated 17:35 IST
(Source: PTI)


  • Ride-hailing service Ola announced that it will be downsizing 1400 of its employees.
  • This decision comes as the company has taken a 95 per cent revenue hit in the past two months.
  • Ola has said that there will be no more cuts related to COVID after this exercise.

Ride-hailing service Ola has terminated 1400 employees in the backdrop of COVID-19. The downsizing comes just days after Ola resumed services in some of the Indian cities as lockdown rules were relaxed.

Bhavish Kumar, CEO, and Co-founder of Ola, in a note to his employees, said that the company's revenue has come down by 95 per cent in the last two months.

"The fallout of the virus has been very tough for our industry in particular. Our revenue has come down 95% over the past 2 months. Most importantly, this crisis has affected the livelihoods of millions of our drivers and their families across India and our international geographies."

Kumar said that the employees in the senior leadership positions have taken salary cuts.

Kumar further wrote that the prognosis for the company is uncertain since the crisis is not short-lived. He also wrote that the world will not revert to the pre-COVID era anytime soon.

As per the note, the affected employees, working under the India Mobility business will depart from Ola by the end of this week, while people working at Ola foods and Ola Financial Services will leave their jobs by the end of next week. The note also reads that there will be no more COVID-related cuts after this exercise.

However, Ola will be providing the affected employees with benefits on the financial, healthcare, emotional, and career-support.

Every affected employee will receive a financial payout of 3 months of their fixed salary, Kumar noted. Moreover, the employees who have spent more time in the company will be eligible for higher payouts depending on their tenure.

Further, all affected employees will be able to continue using their medical, life, and accident insurance cover for themselves and their families up to December 31 or the start of their next job whichever is earlier.

Ola also extended an insurance cover of Rs 2 lakh for the parents of the employees. The insurance cover will be applicable until December 31 or till the time they find a new job. The insurance cover is also applicable to existing workers.

The note further said that Ola will help its departing employees find jobs outside of Ola. "We are rallying the support of the Ola Talent Acquisition team to help with outplacement support for as many people and in helping find suitable roles for them outside of Ola." Moreover, the company is also allowing the employees to retain all company-issued laptops.

Ola resumed its services in more than 160 cities as Lockdown 3.0 ended with a few rules getting relaxed. "As per the latest guidelines issued by various State Government today, driver-partners operating three and four-wheelers on the platform will be available to serve mobility needs on the Ola app, with the highest levels of safety precautions in the states of Karnataka, Telangana, Delhi, Haryana, Chandigarh, Punjab, Tamil Nadu (except Chennai), Andhra Pradesh, Kerala, and Assam." Ola's statement read.

It is mandatory for the can drivers to now wear masks, sanitize cars, and not take more than two passengers per ride. Moreover, the usage of AC is restricted in the cabs and luggage is to be handled by the passengers.

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