In the consumer market space, in the last month only, five major companies have cut over 4000 jobs. This is mostly due to the lack of business during the spread of COVID and lack of demand as well
Recently, on Tuesday, Uber has announced that around 600 jobs are being laid off in the India-South Asia region. Most of them are located in India. The reasons for this as listed by Uber are unpredictable nature during the recovery for the impact of COVID.
In the last month, companies like Uber, Ola, Zomato, Swiggy, Cure fit have announced that layoffs had to be done in order to come out strong in this situation. These five companies collectively laid off around 4400 jobs in the last month. Uber president of South Asia & India had said that these layoffs are part of the previously announced job cuts globally.
Uber’s rival, Ola has also slashed jobs due to the revenue falling well below 95% in the last two months. The company had to let go of 1400 members due to the impact of COVID. A spokesperson at Ola had said that with most of the companies asking their employees to work from home, and travel will be banned for some time, the situation will be very difficult for Ola to recover.
The two biggest food delivery networks of the country, Swiggy and Zomato have also cut jobs in the last months. Zomato CEO has sent an email to its staff that it is expected that 25-40% of the restaurants will be shut down due to the corona impact and to survive this they had to let go of around 14% of its staff. Swiggy had also been hit very hard due to the coronavirus. To come out of this situation, Swiggy had to let go of around 1100 of its staff.
Health and Fitness startup Cure fit had also announced that it had to cut 800 of its employees. The company stated that this is mostly due to reducing costs.
Along with layoffs, some companies are also issuing salary cuts to their employees. Zomato announced that its staff will take a 50% cut in their respective salaries. Some of the higher-level people in Zomato have already announced that they are voluntarily taking a pay cut of 100%. Similar to this, Ola also announced that several members of the extended leadership team have also taken significant pay cuts.