In an email written to staff, CEO Bhaivish Aggarwal said the startup’s revenue is down by 95 per cent in the last two months due to the lockdown and restrictions on travel. The email has been accessed by India Today TV. 

Ola CEO Bhavish Agarwal said that a decision has been taken to downsize the organisation and it involves letting go of 1,400 employees. (Photo: Reuters)

Ola became the latest company on Wednesday to announce large-scale layoffs in the wake of the coronavirus crisis.

In an email written to staff, CEO Bhaivish Aggarwal said the startup’s revenue is down by 95 per cent in the last two months due to the lockdown and restrictions on travel. The email has been accessed by India Today TV.

Aggrawal said in the main that a decision has been taken to downsize the organisation and it involves letting go of 1,400 employees.

“Ever since my last email to you six months ago, I had hoped to write soon in better times. Unfortunately, the Covid crisis continues to unfold all around us causing unprecedented economic and social destruction,” the starting of Agarwal’s letter said.

“In these circumstances, today I write to all of you with the toughest decision I have ever taken. The need to downsize our organisation and let go of 1,400 valued employees.”

He said that plans of the companies have been hit hard by the coronavirus crisis and that the future of the business looks “uncertain” and added that it would take a long time for people to go out like they used to before the pandemic.

He said, “The impact of this crisis is definitely going to be long-drawn for us.”

Listing all that it has done for its drivers since the crisis hit, Aggarwal said, “We have done everything in our means to support those around us in these difficult circumstances.”

“The downsizing exercise has been very tough and sad for the entire management team.”

The coronavirus crisis has hit many startups in India, ranging from food aggregators to those engaged in the auto sector.

Economists expect a slow recovery for India as its stimulus package offers little direct support to cash-starved companies which are left with choice but to layoff employees.

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