Yatra.com cuts some staff salaries, sends others on leave without pay
The company said the measures were "temporary" but “irreversible” for the given durationThe Gurgaon-based company has categorised employees into four brackets, based on the current level of utilisation
New Delhi: Online travel portal Yatra.com has announced pay cuts between 25% and 75% for some employees from 16 April to 30 June and sent the remaining workforce on leave without pay as the company attempts to tide over the crisis following the covid-19 outbreak.
In an internal communication to the employees, the company said the measures were "temporary" but “irreversible" for the given duration. The company will evaluate the situation on an ongoing basis and changes will be duly communicated to the employees.
“We have undertaken cost cuts which are not restricted to only salary cost. Some people have been temporarily asked to proceed on leave without pay given the current scenario with the travel industry while others have taken a cut in pay. The founders have taken a 50% cut. Cost cuts are the need of the hour for any company and especially those in the travel sector which has been one of the worst hit," Dhruv Shringi, co-founder & CEO, Yatra.com said.
The Gurgaon-based company has categorised employees into four brackets, based on the current level of utilisation and the business scenario in days to come to implement the pay cut.
For the employees in the 'optimum utilisation' category, the applicable salary cut is 25%, for mid-utilisation 50%, and for 'low-utilisation' employees the salary cut is as high as 75%. Employees, who fall in the no-utilization category have been asked to go on leave without pay until June end, it said in the letter.
These pay cuts are applicable on the CTC excluding the productivity linked bonus (PLB) component, the letter added. Mint has reviewed a copy of the letter.
“For the industry, especially travel and tourism sector, we are living through unprecedented times where businesses have come to a standstill. The recovery process will be gradual and will take some time to bounce back to normal even post lockdown. We are looking at impact and challenges posed towards the sector every day, where we are trying to assess the situation and take business decisions accordingly," Shringi said.
“While it will be a steady process, post lockdown, we can expect domestic tourism to be in a better position in helping the revival of tourism sector in India, and also essential travel such as those for medical & legal purposes and corporate travel are the low hanging fruits, which can be tapped into on immediate basis," he added.
The company has extended its support to essential service workers and healthcare professionals fighting the pandemic in association with its hotel partners and chains. At the time of check-in, essential service workers and healthcare professionals need to provide their valid staff ID cards to avail this service.
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