Online travel company MakeMyTrip has laid off 350 employees due to the impact of the COVID-19 pandemic on its business. This is the second time the company has taken a harsh step in order to control the damage due to COVID-19. Earlier in March, the company had opted for salary cuts.
In an email to employees, MakeMyTrip Group Executive Chairman and founder Deep Kalra and Group CEO Rajesh Magow said even as times remain unpredictable, what is evident is that the impact of COVID-19 crisis is going to be long drawn for the company.
The company has said that the current crisis has impacted the travel and tourism sector, and there was a need to “revisit" some business strategies as the company doesn’t expect the travel market to bounce back soon.
COVID-19 has not impacted all these sectors equally but the travel and tourism and aviation sectors are bleeding since last four months. The employees who are fired will be provided with medical coverage, including family members, till the end of the year. The company will also ensure gratuity payments and outplacement support.
It can also be recalled that the World Travel & Tourism Council has predicted the pandemic can further put 50 million tourism jobs at risk of getting eliminated.
Since the government has initiated unlock 1.0, things have started moving in the aviation sector. People are not traveling for leisure but essential travel has picked up. In the latest development, the Ministry of Tourism met with leading travel players to discuss the new way to rebuild this sector and bring things back to normal.