Covid-hit MakeMyTrip lays off 350 employees, says no respite in sight

The company is offering mediclaim coverage for the impacted individuals and their families till the end of the year.

According to an internal letter from Founder Deep Kalra and CEO Rajesh Magow sent to employees, the impacted employees will also get leave, gratuity, retention of company laptops and outplacement support, apart from salary payments as per their notice periods.

"It is undoubtedly the toughest decision we have had to take so far and it's the saddest day for us as an organization," read the letter.

The company analysed Covid-19 impact closely and spent considerable time thinking about the path to business recovery.

"It is evident that the pandemic has changed the context and viability of some of our business lines in its current form. Keeping this in mind we have had to take this sad but inevitable decision of rightsizing our workforce in these businesses," said the duo.

The staff rationalization, they said, is mapped to their future business strategy and "is in no way a reflection of the work done by people in these teams".

According to Kalra, the word of travel has been ravaged due to global Covid-19 pandemic.

"What's evident is that the impact of COVID-19 crisis is going to be long drawn for us. It's unclear when traveling will become a way of life, as it was pre-Covid," said the letter.

The tourism industry in India is staring at two crore job losses as industry insiders cite central apathy and a predictably long recovery period.

Indian tourism travel and hospitality impacts 10-12 per cent of India's employment which covers almost 5 crore plus direct and indirect jobs.

"We are living through extraordinary times which have impacted individuals, communities, businesses, countries and our world at a magnitude unknown before and there is no let-up in sight," said the MakeMyTrip executives.

The Indian tourism, travel and hospitality sector has already seen over one quarter of accumulated losses which began from February onwards.