Bengaluru-based scooter rental startup Bounce has recently laid around 20% of its workforce in as a cost-cutting measure, as an Entrackr report. Most of these lays are from mid and senior-level with high salary packages.
According to the report, the company has decided to let go of about 120 employees primarily from an internal project called “New Initiatives” and customer support. Out of these 120, 100 are mid-level employees. The company has offered these employees standard severance packages. It is also being reported that a maximum portion of these employees was eyeing for bike-taxi and carpooling.
The recent development comes at a time when businesses are struggling hard due to the coronavirus pandemic, forcing small businesses to save resources.
However, company CEO Vivekananda Hallekere has denied any such development.
Starting January this year, the startup was cutting costs and had increased security deposit by 3X while charging a higher cost per kilometer traveled from users.
Meanwhile, Bounce competitor Vogo has also laid off 15% of its workforce across hardware and product teams.
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