Travel company MakeMyTrip has stated salary cuts as the tourism sector has taken a massive hit due to the coronavirus outbreak. MakeMyTrip founder Deep Kalra stated that the pay cut would happen over top and managerial levels of the company.
Furthermore, the salary cut has been done beyond MakeMyTrip (MMT) Limited subsidiaries – Goibibo and redBus.
Besides, the corporation might also lay off about 400 employees who are not on its payroll. “MakeMyTrip has about 650 people employed for backend and maintenance services. It has plans to fire 60 percent of its total headcounts in these departments,” Entrackr quoted an anonymous source.
The decision has come a day after Kalra, and the other founder Rajesh Magow chose to draw zero salaries beginning April. They also said that the leadership team at MakeMyTrip would be taking a 50 percent salary cut.
MakeMyTrip and other travel firms have experienced massively since the coronavirus outbreak. MakeMyTrip stated that their business had stagnated due to a fall in bookings and cancellation of flights because of the coronavirus pandemic.
MakeMyTrip said that it was reviewing all its expenses. And, it was reducing variable costs like advertising, marketing. According to the company’s filings, MakeMyTrip had a total of 3,450 employees on its payroll as of March 2019.
In Q3 of FY20, MakeMyTrip’s losses had halved to $11 million owing to a gross bookings jump of 19 percent. However, since late February, it began seeing a steep fall in its bookings.
Source: businesstoday.in
