Introduction
Layoffs are an unfortunate repercussion of the current economic crisis that has hit the global market. Companies across industries are struggling to stay afloat amidst the slowdown and are resorting to measures such as cost-cutting and layoffs. In this blog, we will be looking at Flynote – a Bengaluru-based travel start-up backed by Sequoia – that recently laid off a significant number of its employees.
Company Overview:
Flynote was founded in 2018 by two young entrepreneurs, Kshitij Shukla and Devashish Saxena. The company started off as a travel recommendation platform that provided customized travel plans based on user preferences. It then expanded its services to include flight bookings and hotel reservations, in addition to offering holiday packages. The startup gained popularity among Indian travelers and was soon able to secure a seed funding of $1 million from Sequoia.
Funding and Investors:
Flynote managed to secure a seed funding of $1 million from Sequoia early on, highlighting the confidence that investors had in the company’s potential. The funding was aimed at expanding the business and increasing its reach in the travel industry. However, the current economic slump has put immense pressure on the start-up, leading to a layoff of employees.
Performance
Flynote had been steadily growing in the travel industry before COVID-19 hit the world. However, with the onset of the pandemic, the travel industry was one of the hardest hit. As a result, Flynote had to take measures to ensure its survival in the market. One such measure was a significant layoff of employees.
Layoff Details:
Flynote laid off employees in Bengaluru in May 2020. The exact number of employees laid off has not been disclosed by the company. The layoffs were a result of the economic slowdown caused by COVID-19, which has put immense pressure on startups in the travel industry.
Reasons behind the Layoff:
The travel startup, like many others in the industry, was unable to survive the impact of the COVID-19 crisis. With travel restrictions and a drop in demand, Flynote was forced to restructure its business model. This restructuring led to a decision to lay off employees to minimize costs and reposition the company for future growth.
Statements from Company Stakeholders on Layoffs:
Kshitij Shukla, co-founder of Flynote, said in a statement, “It was a difficult decision to make, but we had to take this step to ensure the viability of the company in these challenging times. We are working towards developing a new business model that will help us better cater to the dynamic and evolving needs of customers.”
Conclusion
The current economic environment has been harsh on startups around the world. Nevertheless, startups such as Flynote have managed to maintain a level of resilience in the face of adversity. With a fresh perspective and a new business model, Flynote is well-positioned to adapt to future changes in the travel industry. While the layoff was an unfortunate event, it was a necessary step to ensure the long-term survival of a promising startup like Flynote.
