The coronavirus pandemic has impacted several businesses worldwide leading to layoffs across industries. In a recent development, Bengaluru-based two-wheeler rental startup Bounce announced that it has decided to lay off around 22% of its workforce or about 130 employees due to the impact of Covid-19 on the mobility industry.
Announcing the decision through a company blog post, Bounce Co-founder and CEO Vivekananda Hallekere said, “Unfortunately, the way the external environment has continued to shift means our medium-term workforce needs have changed as several new business lines, products, and projects we had planned will have to either transform or be put on hold in the coming quarters.”
He further added that the layoffs have come as “an outcome of a change in our business priorities” and is purely a cost-cutting exercise.
However, to help the estranged employees, the company said it has decided to reinstate their salaries to the same level as before the pandemic-induced pay cuts in April and the entire amount — pending dues plus the deducted amount — will be given to these employees.
The company is also offering three-month severance pay as well, either in one go or credited to their accounts on a monthly basis, as per choice of the employee.
Further, the company has also extended its corporate health insurance to these employees until the end of December 2020. ESOP holders will be awarded on a pro-rata basis. The company will also help the team with outplacement support, Hallekere said.
Founded in 2014 by Vivekananda Hallekere, Varun Agni and Anil G, Bounce is a bike rental service that provides premium motorcycles for rent under the brand name Wicked Rides and commuter bikes under the Bounce brand. The company was previously known as Metro Bikes.
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