Sidharth Gupta and Rahul Chaudhary, Treebo's Co-founders have recently launched a paid voluntary resignation scheme (PVRS) for its 400 employees. The decision came in via email from the HR department which stated that the vast majority of its hotels are on stop-sell, all demand channels have dried up, revenue has nearly disappeared, and cash reserves are running low.
Under the PVRS scheme, it allows employees to resign from their role at the company, get the notice period waived off, and get one month's salary, subject to a minimum of Rs 30,000 pre tax in advance along with the 5 days worked till date. The insurance company would be able to extend the insurance cover even after the end of its staff's employment with the chain.
"This does not mean layoffs. This scheme is aimed at anxious employees who may be worried about the travel and hospitality sector at large and our small startup in the face of COVID-19, and want to apply to other sectors and also need immediate liquidity," founder Sidharth Gupta said.
Also, Treebo's co-founders have taken a 60% pay cut amidst the COVID-19 outbreak while its senior management team has taken a 40% pay cut.
For those opting for the scheme, will need to revert to HR by April 8, Treebo said.
The team at Treebo is currently working on a contingent plan to find out alternate employment opportunities for all those who chose the PVR Scheme.
Recently, other companies like MakeMyTrip have also opted for salary cuts amid COVID-19. In March, MakeMyTrip's Deep Kalra informed around 3000 employees of the online travel firm that due to the current COVID-19 pandemic, there will be pay cuts across top and managerial levels of the company
We reported earlier that Oyo Hotels & Homes is firing about 5,000 employees across the globe, with a significant number of the dismissals taking place in China.
According to reports, Oyo is in the process of firing an estimated 3,000 direct employees in the country and temporarily laying off some of its 4,000-strong discretionary staff.
Tourism is the worst affected sector of this epidemic and with MakeMyTrip, there are thousands of other companies feeling the brunt. The new figure from the World Travel & Tourism Council (WTTC) has suggested that the travel sector could shrink by up to 25 percent in 2020.
The outbreak of COVID-19 has impacted the businesses globally and The World Travel & Tourism Council has predicted the pandemic can further put 50 million tourism jobs at the risk of getting eliminated.
The equivalent to a loss of three months of global travel in 2020 could lead to a corresponding reduction in jobs of between 12 percent and 14 percent. The tourism industry accounts for 10% of the world’s GDP and jobs.
Indian tourism and hospitality industry is staring at a potential job loss of around 3.8 crore, which is around 70% of the total workforce, due to the COVID-19 impact. In order to get financial relief and foreseeing bankruptcies, closure of businesses and mass unemployment, the Federation of Associations in Indian Tourism & Hospitality (FAITH), the umbrella body of the industry, has written a letter to Prime Minister Narendra Modi to highlight the devastating economic impact of the coronavirus pandemic on the tourism industry, seeking his intervention to tide over the crisis.