On March 25th, MakeMyTrip announced that the leadership team had agreed to take a 50% pay cut and co-founders Deep Kalra and Rajesh Magow had announced that they will be taking zero salaries from April.
Now after almost three months, the online travel company has decided to reverse its pay cuts of employees up to senior manager levels. The two phases of unlock in India and resumption of essential travel has affected MakeMyTrip’s business positively. The company’s domestic flight booking volumes are currently at 15-20% of pre-COVID-19 levels and hotel bookings are at 10-12%. There has also been a gradual improvement in bus bookings, as per the ET report.
“We are restoring salaries of employees. We are also looking at announcing it all the way up till the senior vice president level effective August 1 or September 1. This will cover the entire workforce minus the leadership team of the group,” shared Magow
The company has also rolled out restricted stock units as part of its stock option scheme to all managers. Magow shared that it was a pretty broad-based allocation. “We have an annual long-term incentive plan and it was part of that annual grant but we were generous this time around. It was well received,” he added.
Besides pay cuts, MakeMyTrip had also laid off about 350 employees in early June. But Magow shared that decision was strategic and had been pending since last year after it switched from running its own retail centres to expand through franchises.
Now with business slowly improving and travel increasing, leadership at MakeMyTrip stays optimistic and looks forward to a better future. With Deloitte on board as partner to audit hotels for compliance and hygiene parameters, and launch of myPartner, a platform that will provide offline travel agents technology and access to the travel inventory, MakeMyTrip is working towards a better future for both business and its people.