Covid-19 lockdown: MakeMyTrip to lay off 10% of its workforce as revenues hit
- Globally, the travel and tourism sector has been the worst hit following the covid-19 pandemic
- Before the move on layoffs, the online travel company in April had furloughed salaries of 3,000 employees
BENGALURU: Online travel aggregator MakeMyTrip (MMT) will lay off around 350 employees, comprising 10% of the workforce, citing slowdown in the business due to global travel restrictions to contain the spread covid-19.
The downsizing at MMT will primarily hit non-tech roles at the group level including the Goibibo unit, said a company spokesperson responding to Mint’s queries.
Goibibo and MakeMyTrip had merged their businesses in 2017.
In an email to employees, MakeMyTrip's chief executive Deep Kalra said the global pandemic has affected travel and tourism sector and that there is a need to "revisit" some business strategies as the company doesn't expect the travel market to bounce back up soon.
Mint has reviewed a copy of the letter.
Globally, the travel and tourism sector has been the worst hit following the covid-19 pandemic. In India, with commercial flights--both domestic and international--suspended till recently, homestays and hotels have also been hit.
The Indian government has now allowed resumption of domestic flights in a staggered manner but many states have opposed the move, following a surge in cases after interstate movement was allowed.
"It’s unclear when traveling will become a way of life, as it was pre-covid…As a result, it’s become agonisingly clear that there are certain lines of business that are far deeply affected and will take much longer than the others to recover... Keeping this in mind we have had to take this sad but inevitable decision of rightsizing our workforce in these businesses,” Kalra said in his email to employees.
He added that all affected employees will be provided medical coverage along with their families till the end of the year. The company will also ensure gratuity payments, and outplacement support for all the 350 employees.
Before the move on layoffs, the online travel company in April had furloughed salaries of 3,000 employees.
In recent past, online travel startup Travel Triangle has let go of around 250 of its 600 employees after business took a hit due to the pandemic.
Mint reported in May that Bengaluru-based based Flynote, a consumer-facing travel startup, has laid off most of its 130-strong staff citing lack of funds. Travel search provider Ixigo also introduced salary cuts for its employees and a 60% pay cut for the leadership team in April.
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Business NewsCompaniesNewsCovid-19 lockdown: MakeMyTrip to lay off 10% of its workforce as revenues hit
First Published:1 Jun 2020, 04:43 PM IST
- Top Gainers
- Top Losers
- 52 Week High