Bengaluru-based travel tech startup Treebo has recently asked its employees to opt for voluntary resignations as a result of a sharp decline in sales due to the ongoing coronavirus pandemic.
According to media reports, Treebo is in the process of letting go of 30-35% of its 400-strong workforce and the company’s co-founders and leadership team have also decided to take a pay cut.
In an email to its employees, the budget hotel chain has launched a Paid Voluntary Resignation Scheme (PVRS), under which employees can resign, get the notice period waived off and get one month’s pay.
According to various sources, the program will work on a first come first served basis and the last date to choose the scheme will be April 8. Also, the pay cut will be applicable until Treebo’s business doesn’t come back on track.
Although the company CEO Siddharth Gupta confirmed the development, no further details have been provided by the company yet.
Backed by Matrix Partners, SAIF Partners, Bertelsmann India, WardFerry, KarstPeak, etc, Treebo had fired around 120 employees last year as it was unable to raise money.
Since then the company was working towards trimming its monthly burn and running the business efficiently. However, the unforeseen situation of COVID-19 has had a devastating impact on the travel industry. The impact of the pandemic has crippled the hospitality industry forcing many companies to lay off employees to prevent cash burn.
Recently, Treebo’s direct rival FabHotels had also laid off about 90 employees while the holiday package marketplace TravelTriangle fired over 250 employees.
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