Scooter rental platform Bounce has announced to lay off around 22% of its workforce. This comes after the deep impact of COVID-19 across the country. This is the second time that the startup has taken such desperate measures. In March 2020, the company fired 120 employees in a bid to cut costs and preserve capital.
In an email to its employees CEO, Vivekananda Hallekere said, “Unfortunately, the way the external environment has continued to shift means our medium-term workforce needs have changed as several new business lines, products, and projects we had planned will have to either transform or be put on hold in the coming quarters. After much deliberation, Anil, Varun and, I along with the board and the core leadership team, made the incredibly difficult decision to let go of around 130 from our team, constituting approximately 22% of our total workforce.”
This decision is purely an outcome of a change in our business priorities and does not either reflect the unparalleled capability, performance, or dedication of any member of our team.
The company has also announced the various aspects of its disengagement for the employees. Following are the details of the care package
Reinstating Salary: We are reinstating the salary of the employees leaving us to the amount before the cuts were announced in April this year. As part of the exercise, the entire deferred amount will be given to them.
Severance: All employees leaving will be given a severance of three months’ salary, as per their original salary before the salary cuts. We are giving them the option of taking this amount in one go or credited to their accounts monthly. This is to ensure continuity of salary credit.
Health insurance: They will continue to have the current corporate health insurance being provided until the end of December 2020. This is to ensure that they are safeguarded during this period and any health issues do not impact them financially.
ESOPs: To those who have been part of the stock plan, ESOP will be awarded on a pro-rata basis.
Outplacement support: We are setting up a support team to help them find suitable jobs at the earliest. The leaving team has the option of being part of this process.
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