According to Business Today, Travel firm MakeMyTrip has announced salary cuts as tourism sector have taken a massive hit due to the coronavirus outbreak. MakeMyTrip founder Deep Kalra said that the pay cut will happen across top and managerial levels of the company. Moreover, the salary cut has been done across MakeMyTrip (MMT) Limited subsidiaries – Goibibo and redBus.
Besides, the company might also lay off about 400 employees who are not on its payroll. “MakeMyTrip has about 650 people employed for backend and support services. It has plans to fire 60 per cent of its total headcounts in these departments,” Entrackr quoted an anonymous source.
The announcement has come a day after Kalra and the other founder Rajesh Magow decided to draw zero salaries starting April. They also said that the leadership team at MakeMyTrip would be taking a 50 per cent salary cut.
MakeMyTrip and other travel firms have suffered massively since the coronavirus outbreak. MakeMyTrip said that their business had stagnated due to a fall in bookings and cancellation of flights because of the coronavirus pandemic.
MakeMyTrip said that it was reviewing all its expenses. And, it was sharply reducing variable costs like advertising, marketing. According to the company’s filings, MakeMyTrip had a total of 3,450 employees on its payroll as of March 2019.
In Q3 of FY20 MakeMyTrip’s losses had halved to USD 11 million owing to a gross bookings jump of 19 per cent. However, since late February it started seeing a steep fall in its bookings.