Online hotel bookings startup Treebo is in the process of letting go of 30-35% of its 400-strong workforce as a result of the ongoing COVID-19 pandemic which has led to a sharp decline in travel and hotel bookings. The company’s co-founders and leadership team have also decided to take a pay cut.
While the three co-founders will take a 60% salary cut, its senior team members will let go of 40% of their salary. Moreover, around 100-120 employees are expected to be let go under the Paid Voluntary Resignation Scheme, said sources requesting anonymity
According to the scheme, employees who opt for it will receive one month’s pay along with insurance cover and support in finding jobs. Based on first come first served basis, the last date to choose the scheme will be April 8.
The pay cut will be applicable until Treebo’s business doesn’t come back on track. The SAIF Partners-backed company’s co-founder and CEO Siddharth Gupta confirmed the development but declined to share further details.
This comes less than a year after Treebo fired around 120 employees as it was unable to raise money. Since then the company was working towards trimming its monthly burn and running the business efficiently. However, the unforeseen situation of Covid-19 has had a devastating impact on the travel industry.
Even well-funded firms such as Oyo have witnessed pay cuts recently. MakeMyTrip saw its leaders take a complete pay cut while other managerial employees have taken a 50% salary drop. Similarly, online travel firm Ixigo’s employees also recently saw their salaries being slashed.
Treebo’s rival FabHotels had also laid off up to 90 employees while holiday package marketplace TravelTriangle fired over 250 employees. Several OTAs have also asked employees to resign as their business has come to a standstill for an unknown period of time.