Ola Layoffs 2020: Indian Rideshare Service Cuts 1,400 Workers As Revenues Drop 95%

Indian rideshare company Ola is reportedly set to lay off 1,400 workers after feeling the impact of the coronavirus and seeing its revenue drop as much as 95% over the last two months.

CEO and co-founder Bhavish Aggarwal told employees in an email obtained by CNBC that it is “the toughest decision I have ever taken.”

Ola’s layoffs will only affect workers in India, which Affarwal said would not include another round of job cuts following the announcement, the news outlet reported. Employees will reportedly receive three months of severance pay, stock options, and insurance coverage.

With customers staying home during the country’s shelter-in-place orders, the demand for Ola’s ridesharing services has dropped dramatically, despite the company’s implementation of safety measures for its drivers and passengers, including required face masks, social distancing, enhanced sanitation after every ride, and personal hygiene etiquette at all times.

Ola is looking to conserve cash during the COVID-19 crisis, which Aggarwal said was “the new realities of our business, we are also going to recommit ourselves to strengthening our operational excellence and leverage a lot more technology to improve efficiencies and reduce cost across all parts of our business.”

Ola joins rideshare rivals Lyft and Uber in laying off workers. Lyft laid off 982 workers while Uber let 6,700 employees go during the coronavirus pandemic.