BookMyShow lays off, furloughs 270 employees as lockdown hits out-of-home entertainment revenue
BookMyShow is letting go of approximately 18% of its 1,450 staff strength across India and other markets
New Delhi: Online ticket booking platform BookMyShow has laid off or furloughed 270 employees as it expects its revenue to be "greatly reduced" in the coming months, hit by the COVID-19 pandemic and lockdown.
Of 1,450 employees at BookMyShow in India and globally, about 270 employees (including those put on furlough) across various functions and teams, will be impacted through this exercise, said founder and CEO Ashish Hemrajani in an email to employees.
"We have had to resort to the task of reducing our costs to align them with what we believe will be greatly reduced revenues in the months to come...Out of 1,450 employees at BookMyShow in India and globally, about 270 employees across various functions and teams, will be impacted through this exercise," Ashish Hemrajani said.
“To those who are leaving us, I am truly sorry for having to make this decision. While it is of no consolation, you should know that the teams that are staying back have voluntarily taken salary cuts ranging from 10% to 50% at the leadership level, given up their bonuses and all salary raises. 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 added.
He said the company has tried to do it best to offer financial support, continued health insurance cover and outplacement support for those impacted by the downsizing exercise.
The company has cut all other expenses and renegotiated with vendors, partners and landlords and after exhausting all other cost-saving measures, it took the decision as a "last resort", he said, adding that the layoffs are "not a reflection" of the individual's performance or ability.
Amid the COVID-19 pandemic and the lockdown, multiplexes, theatres and stadiums were closed and people stayed indoors, which impacted these businesses as well as those in ancillary services.
Several tech-led businesses including Ola, Uber, Zomato and Swiggy have laid off hundreds of employees in the past few weeks as they struggle against reduced earnings and an uncertain business environment.