Online ticket booking platform BookMyShow has 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 Ola, Uber, Zomato and Swiggy 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 it 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 per cent to 50 per cent 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.
(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)