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NewsTuesday July 21st, 2020

IT-Based Startup Laid Off Their Employees As…

The COVID19 that hit the global world since 6 (six) months ago has started to give an impact on the economy, local and global. Companies, big and a small one by one are taken down as the slap is quite hard.

Companies, one by one announces that they have laid off hundreds to thousands of their employees as the companies facing difficult times because of the pandemic. Thursday, June 2nd, 2020 The Ministry of Manpower reported that around 3 million people have lost their jobs as an impact of the COVID19.

The wave of unemployment is not only ghosting the big companies with thousands of workers, but smaller companies also struggling the same fate. In Indonesia, several big names in tech-startup companies are known to have laid off their employees to save the companies life.

 

Below is the list of tech startups that are known to have laid off their employees:

Gojek

Gojek is famous for its strong slogan “Karya Anak Bangsa” or we can say it as The work of the nation’s children. The big names of Gojek cannot help them in maintaining all of their employees during the hard times due to COVID19 strikes. 

Yep, in these difficult times, Gojek had to laid-off their 430 employees as they closed services in GoLife, including GoMassage and GoClean. Also, they closed GoFoodFestival. The employees that left Gojek in the majority coming from GoLife Services.

GoLife had to stop its operations as it is not in line with the physical distancing rules that are advised by the government. Both GoMassage and GoClean services require close contact with the customers, while the GoFoodFestival has great potential for creating crowds.

Grab

Besides Gojek, the digital apps-based ride-hailing startup company from Malaysia, Grab also known to take the same steps. As one of Gojek competitors, Grab has laid off its 360 employees from its offices that spread across the South East Asian. This number is equal to 5% of the total number of Grab employees.

Grab announces the work termination to its employees by using official letters sent through emails. Not receiving any emails means no cut-off on the work contract. Grab give compensation to the employees impacted according to the Law on locals.

OYO

OYO Hotels is quite affected by COVID19 as the global tourism business is battered by the COVID19 pandemic. The OYO hotel network was hit hard by the COVID19 outbreak as they took steps to terminate the employment of 5000 employees in several countries. 

For OYO employees in Indonesia, OYO Hotels laid off around 400 employees or equal to 50% of the total OYO Hotels employees in Indonesia. OYO Hotels is a low budget hotel provider by leveraging digital applications for room bookings.

Traveloka

As a result of the travel ban since March 2020, Traveloka, a tech-startup company that provides digital app-based online ticketing services also hit hard by the COVID19. As a result, Traveloka had to lay off 100 employees. 

The global tourism industry has been the most devastating business since the first time COVID19 strike. Hotels, restaurants, transportation destroyed in a single cut as countries issuing travel bans policies.

Airbnb

Airbnb, a tech-startup that provides digital app-based lodging rental services, is also reported to have laid off its employees worldwide to save the company’s life. No less than 1,900 Airbnb employees have been laid off, this number is equivalent to 25% of the total number of Airbnb workers around the world. 

Airbnb’s revenue dropped dramatically as the global tourism industry is slowing down due to the COVID19 outbreak. Employees affected by the work termination will be included in an alumni program to be able to find work elsewhere.

The five startups mentioned above are well-known startups whose application products are widely known in various parts of the world. Hopefully, we can learn something from the above stories in these hard times.

PHK
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