The novel coronavirus pandemic has crippled the entire travel and hospitality industry. With a complete lockdown enforced in countries around the world and travel bans put in place by governments and organizations, all travel-related businesses have to come to a halt.
The hospitality industry is suffering so badly that it has now resorted to layoffs as a measure to save cash burn. After global travel tech firm Fareportal and travel aggregator TravelTriangle laid-off employees, FabHotels is the newest addition to the list
According to a report by the news website Entrackr, the hotel startup has reportedly laid off about 80 employees from its 400-strong workforce. The company has also slashed the salaries of its entire workforce, and co-founders have taken a 15-20% pay cut, said the sources mentioned in the report.
It is being reported that about 50 employees were laid from the company operations team and 30 were from sales and supply acquisitions. These affected employees have been offered a one-month severance.
As per an email sent by FabHotel’s CEO Vaibhav Aggarwal to his team, employees with a salary of ₹25,000/pm will take a 15% pay cut while people with ₹25,000 plus monthly salary will have to bear 20%.
The news website also quoted that If the pandemic doesn’t subside by early May, then FabHotels would go for another round of layoffs. However, there has not been any official confirmation by the company on the development yet.
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