According to a recent report by international management consulting firm Arthur D Little, up to 135 million jobs could be lost and 120 million people might be pushed in poverty in India. If that happens, it could have a huge impact on consumer income, spending and savings.
India's working class is likely to bear the brunt of the coronavirus impact in the form of job losses, rising poverty levels and reduced per-capita income. This, in turn, will bring about a steep decline in GDP.
Labour statistics improved during the week ended May 10, 2020. But only in comparison to the previous week, which was the worst India has witnessed so far.
The unemployment rate shot up to 27.1 per cent in the week ended May 3. This is the highest rate recorded so far, and the spike left many job seekers highly disappointed, after they failed to find gainful employment despite having struggled.
However, the unemployment rate remained stable at 24 per cent during the week ended May 17.
Here is the list of major companies that have said they are downsizing their workforce.
1. Yesterday (that is 18th may) Uber Technologies eliminated an additional 3,000 jobs IN INDIA. The company is closing dozens of offices around the world and is shutting down many of its side projects in an effort to weather the coronavirus pandemic that has devastated the ride-hailing business.
Earlier this month, Uber dismissed 3,700 employees in customer support and human resources. Combining both the sets, the layoffs now work out to about 25 per cent of the total workforce. A company spokesman said more job cuts could come.
2. Lyft laid off 982 employees, or 17% of its workforce last month, and cut the base salaries of its top executives in addition to furloughing hundreds of employees.
Uber and rival Lyft Inc have been under investor pressure to show profits but the coronavirus-led lockdowns have forced them to cut costs and withdraw their full-year financial outlooks as demand for app-based rides have dropped sharply across the world.
3. Healthcare startup Cure.fit has also laid off 10 per cent of its employees and cut salaries across board, after business took a hit following the coronavirus pandemic. Sources said the Bengaluru-based company had laid off around 500 people.
Trainers, centre managers and human resources personnel were among employees who were either asked to resign from May 1 or were allowed to work till the month end for experience.
4. British airline Virgin Atlantic said on the 5th of May that it is planned to cut 3,150 jobs and would move its flying programme from London Gatwick to Heathrow airport as it counts the cost of the Covid-19 pandemic.
The spread of the novel coroanvirus has virtually brought airports around the globe to a standstill, leaving airlines taking drastic steps to make savings.
5. Co-working major WeWork India, owned by realty firm Embassy Group, has decided to lay off around 20 per cent of its staff with effect from June, as the coronavirus pandemic hits its businesses and revenues across the globe. This would be done to cut its operational costs after its business was hit by the Covid-19 pandemic.
In an email, Karan Virwani, CEO, WeWork India, said that the company needs to make fundamental changes by streamlining its workforce around a more focused business strategy which would entail reduction of its workforce across different roles by around 20 per cent.
6. Zomato said it will cut 13 per cent, or about 520, jobs as a result of the extended lockdown and restaurants shutting shop, Co-founder and Chief Executive Officer Deepinder Goyal told the firm in an email on May 15.
According to sources, the total number of employees at Zomato is currently about 4,000. The employees being laid off in the latest round will remain with Zomato and will be paid half the salary for the next six months. Outplacement teams will help them look for jobs elsewhere, previously allocated ESOPs will continue to vest with them during this period.
7. Bengaluru-based unicorn Swiggy is laying off 1,100 employees across grades and functions over the next few days, as Covid-19 continues to infect its food delivery and cloud kitchen business.
This came just two days after Gurugram-based Zomato announced layoffs. Backed by China's Tencent and Prosus NV, Swiggy has around 8,000 employees.Swiggy Co-founder and Chief Executive Officer Sriharsha Majety said "This is the hardest and longest deliberated decision the management team and I have been faced with over recent times,” , adding, “This is not at all a reflection of anyone's performance.”
8. Airbnb Inc. announced it is cutting 25% of its workforce as the coronavirus pandemic continues to pummel the travel sector.
About 1,900 Airbnb employees across the world will be affected, Chief Executive Officer Brian Chesky wrote in an email to staff on May 5. Those employees’ last day will be Monday, May 11, the email said.
9. US-based airplane major, Boeing, announced that it is planning to cut nearly 10 per cent of its workforce or about 16,000 jobs — on April 11 amid the fallout caused by the coronavirus. CEO Dave Calhoun outlined a plan of voluntary layoffs for employees, while warning that the coronavirus pandemic would have a lasting impact on the global aerospace industry.
The plan, which includes buyouts, early retirements and involuntary layoffs, is expected to mostly target the company's commercial arm, since turmoil in the global airline industry has put the unit under immense strain.
10. TripAdvisor said it is reducing staff by 900 employees, as the coronavirus pandemic hammers the travel industry On April 28.
The measure affects about a quarter of TripAdvisor's global workforce, including more than 600 employees in the U.S. and Canada whose roles are being eliminated.
Subscribe to Business Standard Premium
Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!