The novel coronavirus (nCoV) or COVID-19 pandemic not just brought the world to a standstill, but spelled doom to several businesses and impacted economies globally compelling several multi-national corporations, private companies and business establishments resort to harsh policies of layoffs and pay cuts.
IBM Resorts to Layoffs
In leading to this, tech-giant IBM alongside other companies such as Hewlett Packard Enterprise, Airbnb Inc, Uber Technologies, etc. has started firing employees worldwide owing to the pandemic-induced recession.
Speaking of the situation, Ed Barbini, IBM's Spokesperson said, "IBM's work in a highly competitive marketplace requires flexibility to constantly add high-value skills to our workforce. While we always consider the current environment, IBM's workforce decisions are in the interest of the long-term health of our business."
"Recognizing the unique and difficult situation this business decision may create for some of our employees, IBM is offering subsidized medical coverage to all affected U.S. employees through June 2021," Barbini added.
Arvind Krishna, the new IBM CEO, had spoken optimistically earlier in May about the company being able to weather the pandemic, but also cautioned the investors of uncertainty created by the COVID-19 pandemic, saying the company made a "tough decision" to withdraw revenue projections for the rest of 2020 given a dip in its earnings.
Boeing Co. Takes a Hit
Like the tech-sector, Aviation industry too is severely hit by the Corona pandemic resulting in collapse in air travel, thereby impacting the demand for jetliners. Given this, Boeing Co., a globally acknowledged Airline manufacturer, has come in the line of fire, resorting to large scale job cuts with close to 6,770 confirmed eliminations in the offing, as per the reports.
Confirming the same, Boeing Co., CEO, Dave Calhoun told his employees, "The Covid-19 pandemic's devastating impact on the airline industry means a deep cut in the number of commercial jets and services our customers will need over the next few years, which in turn means fewer jobs on our lines and in our offices."
In fact, Calhoun, had last month indicated that the company will need to cut 10% i.e. around 16,000 jobs from its workforce as many of the its best airline customers fight for survival.
MakeMyTrip Joins the Club
With layoffs being the 'new normal' amongst industries, MakeMyTrip, an online travel firm based in India, has joined the club of sectors, who have taken to job cuts as a policy measure impacted by COVID-19 pandemic.
In the wake of this, the travel-firm has laid off 350 employees, mostly in international holidays and related line of business, according to a company spokesperson.
Speaking of the same, MakeMyTrip Group Executive Chairman and founder Deep Kalra and Group CEO Rajesh Magow in e-mail to employees said, "Over the past two months, we have analysed impact closely and have spent considerable time thinking about the path to business recovery. As a result, it's become agonisingly clear that there are certain lines of business that are far deeply affected and will take much longer than the others to recover. Keeping this in mind we have had to take this sad but inevitable decision of rightsizing our workforce in these businesses."
Calling it a tough decision, Kalra and Magow added, "We have had to take so far and it's the saddest day for us as an organisation".