Travel firm MakeMyTrip recently announced that it will be laying off 350 of its employees due to a severe hit from the COVID-19 pandemic which resulted in a widespread travel ban. The company further informed that there is a lack of clarity on when the traveling will become a part of regular day to day life due to the unassertiveness of the situation.
The CEO of MakeMyTrip Deep Kalra announced the decision via a formal letter. A company spokesperson confirmed the claims on the lines of businesses that were impacted being international holidays and related operations.
"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.
"We are truly appreciative of all the work they have put in over the years to make this organization what it is today. The staff rationalization we have had to undertake is mapped to our future business strategy and is in no way a reflection of the work done by people in these teams. We wish them only the very best for what follows from here, and we thank them deeply for their rich contribution to Go-MMT," it added.
To help workers who have been laid off, the organization is offering Mediclaim inclusion for people and their families till the year's end, leave encashment, tip, holding the option to practice some portion of RSUs as material, maintenance of organization PCs and outplacement bolster separated from pay installments according to their notification periods.
"Over the past two months, we have analyzed the impact closely and have spent considerable time thinking about the path to business recovery. As a result, its become clear that there are certain lines of business that are deeply affected and will take much longer than the others to recover. As we revisited some of our strategies, it is evident that the pandemic has changed the context and viability of some of our business lines," said Rajesh Magow, CEO, in an email to employees.
In the last year, we have expanded the reach of offline retail outlets from over two dozen to over one hundred outlets across India. As part of our ongoing business strategy, we have been expanding our franchise network and we have decided to put all our energies on building that out further as we believe in the long-term potential of that channel, the spokesperson said.
Hospitality, restaurants, events, and travel are among the most impacted businesses because of the Covid-19 pandemic and the associated shutdowns.
MakeMyTrip's yearly income in the last financial year was $486 million, with misfortunes of $167.8 million.
The organization additionally recorded in its yearly report that "wellbeing related dangers, for example, the flu, an infection (H1N1), avian influenza (H5N1 and H7N9), Severe Acute Respiratory Syndrome, the Zika infection or different pestilences or pandemics" as dangers that could affect its business.
