Each sector in the economy has taken a hit because of the novel Coronavirus situation. The majority of the world has been under lockdown since a month now. The companies whether large or small have been finding it hard to run their operations at all in situation where there is no income. One of the major practices to manage the company finances right now is cutting off salaries or laying off employees.
B2B e-commerce company, Udaan has laid off around 2000 employees according to reports. The step was taken to manage financial stability of the company. This includes the ground staff of the company like delivery executives and sales force. The on-roll employees though have not faced any such wrath. Udaan’s business model includes logistics which has been majorly hit due to lockdown.
The company has sent out emails to the workforce asking them to leave. Though the company had recently received 30 million from its parent company in Singapore. Udaan has also received huge investments from its investors in Series D funding round taking its overall value to $2.8 billion.
Udaan hasn’t been the only company using the method of cost cutting. Other big names in the market like, OYO, Inmobi, Ixigo, BlackBuck, Bounce and FabHotels have taken similar steps to keep themselves going. Several startup founders and lobbyists have appealed to the government to make relief policies for startups to help them go through this phase. The unemployment rates will definitely shoot high and the economy will take time to recover post Covid-19.