Udaan lays off contractual employees amid COVID-19 – Offers one-month compensation & recommendation letter

ⓘ Featured image details: Udaan founders, left-to-right: Amod-Malviya, Vaibhav Gupta and Sujeet Kumar, co-founders of Udaan; Credits: TechCrunch


India’s B2B e-commerce startup unicorn has reportedly laid-off several employees working on contractual basis with the company. The Bengaluru-based startup has shut its business for non-essential items amid the nationwide COVID-19 lockdown.

Udaan in a statement mentioned that the employees who have been laid-off were informed by its consulting firms on April 24.

The company that is operational across 900 cities across India, in a statement said that the employees who have been laid-off will be offered one-month compensation and will also get recommendation letter to find employment through partner firms. Udaan will ensure to set the laid-off employees on the priority of the partner firms’ hiring lists.

The company took the decision to lay off contractual employees as a measure of survival amid the pandemic situation that has caused a 40 percent drop in revenue for the company’s business for essentials and the complete shutdown of its non-essentials business.

Udaan has not taken any decision regarding the permanent employees and its associates who are covered under its group medical insurance scheme will get the benefit for another three months.

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Pradeep Singh
Pradeep Singh

Former interim CTO at LAFFAZ. A full-stack developer, possessing 6+ years of experience in working closely with tech startups in India and UAE.

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