Small startups and well-funded unicorns in various sectors such as online food delivery, hospitality and tourism, and mobility, are downsizing or streamlining operations to cut costs as demand remains muted due to the coronavirus outbreak and the ensuing lockdown to contain its spread.
Several startups laid off or furloughed employees and contract staff in April and May, besides imposing salary cuts to save cash, with revenues taking a hit. Travel and hospitality startups have been hit the most. Bengaluru-based travel startup Flynote has laid off most of its 130-strong workforce citing fund shortage.
Hospitality unicorn Oyo, which has been laying off people since late 2019, announced salary cuts, besides furloughing staff in late April, to save cash after its revenues plunged. Foodtech startup Dineout and online real estate platform Magicbricks have cut employee count across business roles, said three people aware of the development. Some employees of Magicbricks were asked to resign in writing without severance pay and also serve a 30-day notice period, said a person, requesting anonymity.