Ola to cut 1,400 jobs after reporting 95% drop in revenue

SoftBank Group-funded Indian ride-hailing company Ola will cut 1,400 jobs, or about 35 percent of its workforce.
OLA cabs in Bangalore
Ola employs around 4,000 people.

Earlier this week, rival Uber Technologies said it will cut 23 percent of its global workforce in an attempt to become profitable amid the crisis.

Ola joins a list of start-ups, including SoftBank-backed WeWork, restaurant aggregator Zomato and food delivery service Swiggy, that have laid off employees to cut costs as the pandemic wreaks havoc on businesses and forces people to stay indoors.

“The prognosis ahead for our business is very unclear and uncertain. It is going to take a long time for people to go out and about like before,” Bhavish Aggarwal, co-founder and CEO of Ola said in a note to employees on Wednesday.

Revenue at Ola has come down 95 percent over the past two months, Aggarwal said.

“With more companies preferring to have a large number of employees work from home, air travel limited to essential trips and vacations being put off for better times, the impact of this crisis is definitely going to be long-drawn for us,” he said.

India has extended a nationwide lockdown until end-May as the government tries to contain the spread of the Covid-19 virus.

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