MakeMyTrip announces salary cuts as tourism sector takes a massive hit
MakeMyTrip Goibibo, redBus and other travel firms have suffered massively since the coronavirus outbreak.
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.
After the pay cut announcement, the company has reportedly informed around 3000 employees that their pay will be slashed due to the Coronavirus crisis. The report also suggests that the pay cuts will be across the top and managerial levels of the company. 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 $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.