The effect of the recession! Uber laid off 600 employees, TVSA cut the salaries of top employees

New Delhi, 26 May 2020 Tuesday

The economic downturn due to the Corona lockdown is also having an impact on the economy, with various companies resorting to layoffs to reduce their costs, as well as well-known online cab service provider Uber laid off 600 workers in India.

The layoffs come from customer and driver support, business development, legal, finance, and marketing verticals, with these 600 employees accounting for about 25 percent of Uber's total workforce in the country.

Ola, Uber's rival in the cab service sector, has also laid off staff to deal with the Corona disaster.

Last week alone, Ola laid off 1,400 employees, accounting for 35 percent of Ola's total workforce in the country.

Uber has announced that employees affected by the layoffs will be given 10 weeks pay-out and medical insurance coverage for the next 6 months, all of the 600 employees the company has laid off were permanent employees.

Uber's India and South Asia president Pradim Parmeshwar said the job cuts were part of a recently announced global job cut. Uber has laid off 6,700 employees globally.

Similarly, some well-known companies in the auto sector, which is facing a severe recession, have started layoffs or pay cuts, including Rico Auto, a company that makes TVS motors and auto components.

TVSA has decided to cut the salaries of its top employees, while Rico Auto Industries laid off 119 permanent employees of Haryana's Dharuheda unit on May 22. The company had introduced VRS scheme for permanent employees in October 2019.