The pandemic situation has impacted all kinds of startups. They are struggling to manage their vast amount of expenses, and that’s why they did not earn a single amount of revenue lockdown. Recent reports from E-scooter company Lime state that they have decided to lay off 13% of its current staff because of the financial problem facing during this time. Brad Bao, who is the CEO of Lime, set in a letter letting 80 employees of the company. Brad said that these employees will get an email confirmation, and are required to follow the procedure before leaving their job. Different reports about how Lime companies are all on the verge of success and they were close to making a profit.
However, because of a pandemic situation more than 99% their operations have been shut down which is creating a substantial financial burden on the company, and they had to take this decision of letting go employees. Earlier this year Lime scooter company said that there are 100 employees to make the company profitable. However, management says they did not anticipate such kind of global pandemic situation, which will force them to shut down their operations in every country they operate.
Lime is not the only scooter company, others are also facing the same situation, but the executives said they are ready to take proper actions during hard times. US rival Bird and Swedish Company Voi have also informed some of their employees of letting go via Zoom video conference call. Meanwhile, other big companies like Uber are also planning to lay off 20% or 5400 employees soon. Ridesharing or scooter startups’ whole business depends upon the regular day to activities which are currently put on a stop.
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