Corona business impact started in India with job loss and pay cuts. Those startups who have been positive to run their business for the last two months. Now those startups started to pay cut and layoffs in a big way.
Corona business impact started in India with hospitality startups Oyo
Oyo CEO Ritesh Aggarwal said in a meeting to his employees in a town hall on Wednesday. The company is going to send some employees on unpaid leave shortly. These employees will be sent on leave from May 4 until further notice.
Ritesh Aggarwal also told that this is a very difficult time for Oyo. He will take a tough decision due to deteriorating conditions. Remaining Oyo employees asked to accept the 25 per cent cut in wages.
This decision will apply to the salary of all employees from April to July. The employees will continue to get other benefits including medical insurance etc.
App-based cab aggregators Ola and Uber business is almost shut due to corona business impact
Ola founder, Bhavish Aggarwal said that the situation has worsened in the last few weeks. The company’s revenue and occupancy has fallen by 50 to 60 per cent.
Because of corona business impact, the company’s balance sheet is under tremendous pressure. Recently,
Hotel and travel industry completely shutdown since corona business impact started in India
Let me tell you that the hotel and travel industry is completely stalled in the country since 23rd March. This has a direct impact on companies like Oyo, Zomato, Swiggy, Ola, and Uber. Even if the lockdown revokes, social distancing and other rules will continue.
The way people have got used to social distancing during the lockdown. This is going to be long-lasting behaviour or consumers. Companies like Oyo, Zomato, Swiggy, Ola, and Uber have to rethink their business strategy. The social distancing will be for a very long time in society as per these startups.
Also Read: Unemployment in India can move 40 crore people below the poverty line
Post lockdown people prefer travelling in their own vehicle instead of Ola and Uber. The threat of corona infection will create a lot of apprehension in people for going out. The food ordering from aggregators like Zomoto and Swiggy will also get a hit.
The large number of job cut and merger of companies expected by the end of this FY
As per a top venture capitalist, technology startups are likely to cut hundreds of jobs. This will be in the next 6-8 months as demand is low amid tight funding. He said that the layoffs started due to declining business and closure of the company.
Anand Lunia, Partner Founder at India Coherent, said, “Most companies have completed a round of layoffs. We are going to see a continuous layoff for the next 12 months.”
Inventus Capital India managing director Rutvik Doshi said, “The layoffs will pick up at the end of the year when the business merger starts.
COVID-19 will not only hit MSME but it will hit large enterprise more
Initial data showed that the COVID-19 outbreak will hit small startups. But in reality, it is affecting big businesses. We have predicted that there will be a tremendous reversal in the next quarter, which is going to change the economic number.
He added, “It’s my guess that 20% of jobs will be trimmed by the end of the financial year. It can take up to two years before this outbreak takes its business back on track.”
Blue-collar jobs have been the worst hit in the SME sector in the last two weeks. More than 10 million people becoming unemployed.
During this period. Himanshu Geed, co-founder of Jobs Portal, said the crisis for white-collar jobs has only begun but at this moment it’s Is limited to sectors. In the next few months, large companies will have to restructure and this will make many employees redundant.
