Amid the coronavirus outbreak, consumer internet startups are preparing to cut salaries and fire staff to stem the impact of the nationwide lockdown, according to a Business Standard report.
India is currently in a 21-day lockdown to contain the spread of COVID-19. Several startups have had to halt operations since only essential services are allowed during this period.
Companies such as Bounce, Shuttl, Fab Hotels, Instamojo, Zomato, Curefit, and HealthifyMe are cutting their staff's compensation, sources told the publication.
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Moneycontrol could not independently verify the story.
"Pay cuts will ensure no jobs are lost irrespective of the economic situation, and the company improves its runway to over 30 months," Bounce said in a response to Business Standard.
Bounce co-founders Vivekananda Hallekere, Varun Agni and Anil Giriraj are taking a 100 percent deduction in compensation. For the rest of the staff, the cuts range from 20-60 percent, the report said.
The scooter-sharing company said it would restore the salaries once the situation improves, the report said. Bounce's staff has been offered ESOPs (employee stock ownership plans, so that they can benefit once business comes back to normal.
At Droom, 15-30 employees were asked to leave after the annual appraisal cycle, based on their performance, Sandeep Aggarwal - the founder of the online car marketplace - told the paper.
The staff of Droom will take a 15 percent salary cut, Aggarwal told the publication.
"I have taken a 100 percent cut from March 16. The salary cuts for other staff are effective from April 1. No person has been laid off," Aggarwal added.
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