Cab aggregator Ola Cabs has revealed that it has witnessed a 95 per cent drop in revenues during the Coronavirus pandemic. The company has revealed that it will soon lay off a major chunk of its employees.
Ola says that it is downsizing the organization and it is laying off 1,400 of its employees. The company says that the Coronavirus pandemic has been very tough for the cab industry in particular. The company says that its revenue has come down 90 per cent over the past two months.
The company has revealed that every affected employee will receive a minimum financial payout of 3 months of their fixed salary, irrespective of the notice period. The brand says that those employees who have spent significantly more time with Ola will be eligible for higher payouts depending on tenure. The brand says that all affected employees will be able to continue using their medical, life and accident insurance cover for themselves and their families up to 31st Dec 2020 or the start of their next job whichever is earlier.
Ola will also offer medical insurance for up to 2 parents (or in-laws) to each employee. This parental insurance will cover parents for all pre-existing ailments up to the age of 90, for a sum of Rs. 2 lakhs. This insurance will continue till 31st Dec 2020 or the start of their next job whichever is earlier.
“This is an opportunity for us to envision a new future of safe, efficient, and clean mobility, and recommit ourselves towards building this future. As I mentioned, we will be increasing our investment into R&D and innovation in this period and pursuing our dreams and ambitions with even more determination,” Ola Co-founder and CEO Bhavish Aggarwal said in a statement.