Online ticket booking company, BookMyShow, has laid off or furloughed 270 employees, making it the latest addition to the list of well-funded consumer internet companies to have fired workers in the wake of the economic crisis, due to the Covid-19 pandemic.
Ashish Hemrajani, CEO, BookMyShow informed the employees of the downsizing move, which he said in the mail was resorted to, “due to the unfavourable environment.”
The e-mail was later posted on the Company’s website.
The employee strength of the Company stands at 1,450 in India and globally,. About 270 employees across various functions and teams will be impacted by this exercise.
“This includes those who will be put on furloughs, along with those with whom we will have to part ways, at least, as of now,” said Hemrajani.
However, the Company did not provide a breakup of the number of employees who have been fired, and those put on furlough.
In the last funding in 2018, the Company was valued at about $800 million and investors, such as SAIF Partners, TPG Growth and Accel Partners were among its list.
BookMyShow joins the likes of home-grown ride-hailing major Ola, hospitality chain Oyo Hotels & Homes, food delivery majors Zomato and Swiggy, and B2B e-commerce company, Udaan—that are among the most high-profile consumer internet companies to have raised millions of dollars in funding — in slashing employee numbers.
Founded in 1999, by Hemrajani, the Company’s affected employees will be provided a severance package that includes two months’ salary, irrespective of tenure or as per notice period, as well as medical insurance, which will cover their nominated family members also, until September 30.
Those furloughed will continue to remain employed with BookMyShow and will be eligible for all medical insurance, gratuity and other benefits as per their employment standards.
“The Company has cut all other expenses and renegotiated with vendors, partners and landlords, and after exhausting all other cost-saving measures, we have taken this decision as a last resort,” Hemrajani said in the e-mail.