(Image source from: newgenapps.com)
Albeit the coronavirus pandemic, the Indian economy has gradually begun to rise and the startups are beginning to reinstate salaries after pay cuts from April to June.
With Unlock 2.0 being operational across various States of India, startups too had gained momentum in their sales which has led some startups to restore their salary cuts.
While this does not apply to all the startups in India, some of them like Zomato, Grofers, Snapdeal etc announced that they are rolling back salary cuts which were done for 3 months due to COVID-19 situation.
Interestingly, e-commerce platforms like Snapdeal have also announced increments and brought back the bonus schemes to employees.
Grofers, an online grocery store has confirmed to Economic Times that they have reinstated full salaries and they were conservative till now because of the uncertainty in the functioning of the business. Headquartered in Gurugram, Grofers had fired about 50 to 70 employees in April.
Zomato CEO Deepinder too took to his blog to state that his company has restored the original salaries and the same was also mentioned by the travel operator Ixigo earlier this month.
The founder of Ixigo told to Economic Times that as the flight services have resumed partially in India their business scaled up more than they have actually anticipated in the post lockdown period. He added that from July they would like to bring back the salaries to pre-lockdown level.
With effect from June 1, Snapdeal, an aggregate e-commerce provider, rolled out increments to approximately 700 of its employees. However, the company has not divulged any details about the number of employees it had fired during the lockdown period.
Additionally, employees are raising questions about the hiring practices of startups as the events of last quarter have made the employees or new comers suspicious of joining a startup lately.
But, the recent times are not giving any good news to internet firms. Oyo, curefit and Bounce- a bike rental startup have recently had job cuts as they operate in a sector which is not going to see any rise in the coming days.
Many startups have become wary of the COVID-19 situation in the start itself and started downsizing sooner. But when it comes to IT, the pace of hiring and salaries have not faced much damage due to COVID-19.
Over the last three months, successful startups like oyo, ola, uber, zomato, swiggy, Bookmyshow and Livespace have fired thousands of employees to deal with the current pandemic situation as their operations were shut.
By Gayatri Yellayi