financetom
Business
financetom
/
Business
/
Coronavirus effect: BlackBuck to lay off over 200 employees, Ecom Express puts hiring on hold
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Coronavirus effect: BlackBuck to lay off over 200 employees, Ecom Express puts hiring on hold
Apr 16, 2020 6:05 AM

As movement of goods around the country has dropped drastically during the ongoing lockdown, logistics players have been pushed to take some tough measures. Logistics startup BlackBuck is letting go of over 200 employees as the company faces massive disruption due to the lockdown, people aware of the development told CNBC-TV18.

The company is in the process to lay off between 200-250 employees, mainly from the customer experience and operations teams, sources said. One source said that the company is trying to get several of the affected employees placed in other organisations.

Blackbuck did not respond to queries.

The company has over 400,000 partner trucks empanelled on its platform, and serves over 30,000 onboard clients, including Asian Paints, Coca Cola, ITC, Tata Steel and Hindustan Unilever. BlackBuck has raised over $200 million in funding from investors such as Accel Partners, B Capital, Flipkart, Goldman Sachs, Tiger Global, and several others.

Another logistics player Ecom Express said it has put hiring on hold and also stopped major capex spends. The company, however, said it will not be laying off any employees.

“The lockdown and related restrictions have adversely impacted volumes. However, we are fortunate to be in a good financial position and as of now, we don’t intend to do any layoffs,” said TA Krishnan, CEO of Ecom Express.

“These are clearly testing times and we will do everything to protect our people. The cost base across the board is being reviewed. We have put on hold most of our hiring and major capex spends as we are reworking our business plan,” he added.

Ecom Express had raised $36 million from British firm CDC in December. It also counts Warburg Pincus as an investor.

Since the beginning of the lockdown on March 25, logistics players have seen movement impacted as states closed borders, non-essential products were not allowed to be transported, and procurement of curfew passes on the ground proved to be a challenge.

While Blacbuck co-founder and CEO Rajesh Yabaji did not respond to calls or messages on the layoffs, he had told CNBC-TV 18 on March 26 that since only the movement of essential goods were allowed, 60-70 percent goods were not moving in the country, and that a score of truckers were left jobless.

Logistics players are expected to see a boost as the Ministry of Home Affairs on Wednesday said that movement of goods will be allowed starting April 20 without distinction between essential and non-essential products.

E-commerce companies will also be able to deliver products that were not earlier classified as essential starting April 20.

Also read: Companies cutting salaries during lockdown will need employees' consent

Follow all coronavirus updates live here

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
FOCUS-Tencent's next level up: fewer big foreign franchise games, more in-house
FOCUS-Tencent's next level up: fewer big foreign franchise games, more in-house
Apr 5, 2024
HONG KONG, March 21 (Reuters) - In a sea change at China's Tencent ( TCTZF ), an easy-to-play game of cute characters tackling obstacle courses has taken precedence over developing a big-budget sophisticated foreign franchise for smartphones. Since late last year, the world's largest video games company has, according to sources, redeployed hundreds of people from the team developing Assassin's...
Soccer-Liverpool's Klopp happy to avoid further injuries ahead of Man Utd trip
Soccer-Liverpool's Klopp happy to avoid further injuries ahead of Man Utd trip
Apr 5, 2024
April 5 (Reuters) - Liverpool manager Juergen Klopp was happy his side came through their nervy 3-1 home win over Sheffield United on Thursday without any further injury worries ahead of their huge match against Manchester United ( MANU ) at the weekend. Conor Bradley's own goal cancelled out Liverpool's early lead but Alexis Mac Allister's strike put Klopp's side...
JPMorgan picks new bosses in banking, capital markets after reshuffle
JPMorgan picks new bosses in banking, capital markets after reshuffle
Apr 4, 2024
NEW YORK (Reuters) -JPMorgan Chase reorganized the leadership in its global banking division, installing new leaders in capital markets and investment banking, according to a memo seen by Reuters on Thursday. The new structure merges the commercial, corporate and investment banking groups under executives Filippo Gori and Doug Petno, who were picked to lead the broader unit in February. Our...
Tencent's next level up: fewer big foreign franchise games, more in-house
Tencent's next level up: fewer big foreign franchise games, more in-house
Apr 5, 2024
HONG KONG (Reuters) - (This March 21 story has been corrected to rectify the time period from 'last month' to 'in January' and Undawn's revenue data from Appmagic from $287,000 to $288,000 while adding the global revenue for January) In a sea change at China's Tencent, an easy-to-play game of cute characters tackling obstacle courses has taken precedence over developing...
Copyright 2023-2026 - www.financetom.com All Rights Reserved