The coronavirus pandemic is affecting every walk of life. It’s not just health that is being affected, but the economy as well. Industries like hospitality, travel and much more are suffering because there’s no business taking place and some companies are just not able to cope with the lack of business and revenue coming in.
It was only a few days back that we spoke about JCPenney going bankrupt, a company that has been in the business since 118 years, the COVID-19 pandemic proving to be a catalyst to their downfall. Now, another big Indian brand has announced the impact that the lockdown has had on their profitability.
One of the most used services in the country, Ola is known for peer-to-peer ridesharing, taxi and food delivery across the country. Primarily being used as a taxi service, we know there haven’t been too many people roaming outdoors these days, which led to a cmplete stop in Ola taxi services as well.
The hit in revenues led to CEO Bhavish Aggarwal confirming earlier today that 1,400 Ola employees will be laid off, with a 95% drop in revenue being recorded in the last 2 months. He decided to email his employees about this news saying that the future is ‘unclear and uncertain’ and that the impact of the crisis if going to be ‘long-drawn for us’.
Aggarwal confirmed that the decision the company had to make was to downsize and ‘let-go’ of 1,400 employees. If the situation doesn’t get better anytime soon, this number is only set to increase. If the lockdown eases, there could be some hope for the company. For all future updates, stay tuned to ReadScoops.com…
