BookMyShow downsizes due to COVID-19, affecting 270 employees
In another big blow stemming from the outbreak of COVID-19, BookMyShow has laid off and furloughed over 18% of its workforce. The decision from the online entertainment ticketing major comes as part of a downsizing effort to accommodate the financial challenges of the pandemic and falls in line with similar steps taken by Uber, Ola, Swiggy, and Zomato. Here is more about it.
270 employees laid off and furloughed
In an email to employees, Ashish Hemrajani, the Founder & CEO of BookMyShow, announced the downsizing exercise to steer the company through the ongoing crisis. He said, about 270 employees of the company will be affected by this move, with some being put on furloughs, while others asked to part ways, "at least, as of now."
Relieved employees will be entitled to financial, insurance benefits
Hemrajani said all those employees who will be relieved as part of this exercise will be entitled to severance pay equivalent to a minimum of 2 months of salary irrespective of their tenure or as per notice period, whichever is higher. Plus, they will also get outplacement support with BookMyShow skill certification, access to Inner Hour mental health helpline, and medical insurance until October.
Furloughed employees will also continue to get some benefits
Meanwhile, those who will be put on furlough or leave without pay will continue to remain BookMyShow's employees and eligible for all medical insurance, gratuity and other benefits as per their employment standards. Hemrajani told the affected employees that these "uncomfortable, unfortunate" decisions do not reflect the quality of the work that any of the team members have put in.
"Greatly reduced revenues" expected in months to come
"Given this extraordinary situation of such magnitude, with no let-up in sight, we've 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," Hemrajani emphasized in the email.
Other employees have taken 10-50% salary cuts
The BookMyShow boss also noted that the teams staying back have "taken salary cuts ranging from 10% to 50% at the leadership level, given up their bonuses and all salary raises" to help reduce costs for the company. Plus, BMS has also cut all other expenses and renegotiated with its vendors, partners to brace for an uncertain future with minimal consumption of out-of-home entertainment.