Coronavirus: BookMyShow lays off, furloughs 270 employees
Online ticket booking platformhas laid off or furloughed 270 employees as it expects its revenue to be "greatly reduced" in the coming months, hit by the COVID-19 pandemic and lockdown.
Several tech-led businesses, including, , , and , have laid off hundreds of employees in the past few weeks as they struggle against reduced earnings and uncertain business environment.
"...we have had to resort to the task of reducing our costs to align them with what we believe will be greatly reduced revenues in the months to come...Out of 1,450 employees at BookMyShow in India and globally, about 270 employees across various functions and teams, will be impacted through this exercise," BookMyShow Chief Executive Ashish Hemrajani said in an email to employees.
This includes those who will be put on furloughs, along with those who we will have to part ways with, at least, as of now, he added.
He said the company has tried to do its best to offer financial support, continued health insurance cover, and outplacement support for those impacted by the downsizing exercise.
Hemrajani said the teams that are staying back have voluntarily taken salary cuts ranging from 10 percent to 50 percent at the leadership level, given up their bonuses and all salary raises.
The company has cut all other expenses and renegotiated with vendors, partners and landlords and after exhausting all other cost-saving measures, it took the decision as a "last resort", he said, adding that the layoffs are "not a reflection" of the individual's performance or ability.
Amid the COVID-19 pandemic and the lockdown, multiplexes, theatres and stadiums were closed and people stayed indoors, which impacted these businesses as well as those in ancillary services.
According to Union Health ministry, total coronavirus cases in India stands at 1,65,799 with 89,987 active cases and 4,706 fatality so far.
(Disclaimer: Additional background information has been added to this PTI copy for context)