Hello everyone,
It’s appraisal time. And all the hard work you’ve put in over last year may still not get you the rewards you were expecting. But don’t take it too hard, especially when companies all over the country are handing out pink slips.
More layoffs in store
Technology startups are likely to cut hundreds of jobs over the next six to eight months, as demand stutters amid a funding squeeze.
The job cuts will likely speed up year-end when many businesses initiate merger talks or fold up. Retail, hospitality, travel, mobility and financial services—worst affected by the pandemic—will see maximum layoffs.
Multiple internet businesses—including Oyo, BlackBuck, Treebo, Acko, Fab Hotels, Meesho, Shuttl, Capillary, Niki.ai, Swiggy and Fareportal—have on average cut workforce by 30%, including temporary staff, in the past one month. Read more.
As startups axe jobs, employee morale too has taken a hit
Social commerce platform Meesho fired close to 150 executives across roles citing “cost-cutting” measures, taking everyone working there the by surprise. The ones retained are not particularly happy either, as they remain sceptical about long-term prospects.
A common theme across executives at the firms that ET spoke to continues to be a high level of anxiety, fear of the unknown and pressure to outperform in a sub-optimal market. Those who hold on to their jobs also highlighted the fear of market conditions changing for the worse will hurt their career prospects, if not immediately then in the coming few months.
Under pressure
Explaining the situation from an investor’s lens, Alok Goyal, Partner at Stellaris Venture Partners, said the job of a CEO is to ensure that the company survives and emerges in the healthiest possible state when the opportunity presents itself again. “Make cuts once, and make them deep if you need to. Make them shallow if you think that will suffice, but please do not do it out of wishful thinking. If you fire 5 people every month, that will create a culture of fear,” he said. Read more.
Facebook dials Jio
Among the many things left unsaid in the several statements surrounding the $5.7-billion investment by Facebook in Reliance Industries-owned Jio Platforms on Wednesday, was that the social media giant’s messaging service WhatsApp could now be transitioning beyond an app into a “platform”, with commerce and payments becoming integral to its strategy, besides communication.
In a way, Facebook has logged into the Jio ecosystem.
Read more from our coverage:
– The inside story of Facebook-Jio’s $5.7 billion deal
– FB, Jio should be transparent on data sharing: Experts
– Net Neutrality laws likely to be tested in clearance for FB-Reliance Jio deal
– Reliance Jio-FB deal will upend payments sector: Experts
– How Facebook is logging into the Reliance Jio ecosystem
Oyo cuts salary
SoftBank-backed Oyo Hotels & Homes has announced pay cuts and ‘leave with limited benefits’ options for its staff in India to soften the impact of the Covid-19 pandemic on the hospitality chain’s business.
Why now?
On April 8, while announcing furloughs for employees across the globe and referring to government advisories in India on pay cuts and layoffs, Oyo founder Ritesh Agarwal had said given the government advisories in India, the company remains committed to ensuring that all employees in India get salary and benefits during the ongoing lockdown period which was initially scheduled till April 14 and got extended till May 3. Read more.
Consumers want to buy gadgets
Consumers in India say they want to buy gadgets, office and school supplies, and white goods and appliances if available on e-commerce platforms, as demand for such products has grown after the government extended the nationwide lockdown from 21 to 40 days, according to a survey.
Around 33% of the 8,600-odd respondents who participated in the survey said that they would order a gadget—laptop, tablet, smartphone, printer etc., if the government allowed it.
E-commerce companies, which can track consumer demand based on what people are searching on their websites and apps, have said that there is demand for gadgets, kitchen utensils, personal grooming products apart from ACs and coolers. On Wednesday, the sale of fans and books at physical shops was permitted by the government, but not devices such as smartphones or laptops. Read more.
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