The lockdown due to COVID-19 has created a big problem for all the start-ups and companies. This has led to a situation where companies are now fighting with a big cash crunches and one of the way to survive in this situation is either layoffs or cut down in the salaries of the employees. Udaan is one of the company which is dealing with the same situation. The company has laid off many of their contract workers. Let us see the complete story behind the Udaan layoff.
Story Behind Udaan Layoff
Udaan is a B2B e-commerce platform which provides a wholesale product solutions to different vendors in all categories. The start-up has fired thousands of its staff members; this week which worked over the contract basis with the start-up. One of the fired employee has started in the reports while talking to the news agency that, the message related to their landed was landed in emails respective emails starting 23rd April through 24th April. The Udaan layoff consist of the employees in sales, credit, collection team, and the delivery team whose lives have been impacted by the decision my by this start-up company.
Employees working in the start-up were issued termination letters without any prior notice or any other type of communication stating any type of layoff. As per an employee, over 200 employees have been terminated from their jobs and that too being fired with immediate effect, but the other sources tells that, this number could be around thousands, across Udaan’s pan India operations.
The terminated employees will be be given 1 month gross salary along with payment of all dues till 24th April 2020. Employees will continue to have a secure medical insurance coverage for 3 months post separation i.e. till July.
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Working Model of Udaan and some Insights
Udaan is a B2B (Business to Business) marketplace for trade that is working for connecting retailers, wholesalers, traders, and manufacturers using technology as a main tool. The parent company of Udaan is Hiveloop Technology Pvt. Ltd and which works on a USP of connecting the small and medium businesses in India. This idea connects the wholesalers, traders, retailers and manufacturers and many others on a single platform via a mobile app using internet.
The udaan app enables users i.e. their potential customers or the buyers, to access to real insights into active trends and provides them many other premium B2B trade features in a single platform. The platform has enabled small and medium business owners to use the power of technology to nurture and scale their businesses without any type of tensions or problems while doing a business.
Udaan Layoff v/s Other Companies Layoffs
The countrywide lockdown has further stretched the burden over our survival as well as on the Indian start-ups. Companies are going for different types of cost-cutting measures in order to survive in this difficult period of time. Several companies have done their several job cuts are already done, people have been declared on temporary leave while others have been asked to take pay cuts in-order to retain their jobs. And this will not stop till the time this lockdown comes to its end, there can be another wave of layoffs expected in the next few months by the market analyst.Some of the status of different companies are:-
- In the social commerce sector, startups like Meesho, Shop101 have let go of employees due to cash crunch.
- Tech startup unicorns like Grofers, BlackBuck etc have also laid off employees due to many internal reasons which are not disclosed.
- OYO Hotels and Homes has now asked its employees to accept 25% salary deduction effective for April-July 2020 payroll as there is no business in the market due to the present problems and it looks to overcome the impact on revenue from the Covid-19 pandemic.
- Logistics tech unicorn BlackBuck is said to laying off around 200 employees as the transport sector faces massive disruption due to the lockdown and will be going to revive after the end of this global lockdown.
- Meesho has laid off around 200 employees. About 40% of the company’s key account managers, all business relationship managers and about 30-40% of the business development team have been laid off due to this problematic situation due to COVID-19.