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New Delhi
August 31, 2020
June 14, 2024

MakeMyTrip Layoffs: What Happened & Why?

In August 2020, MakeMyTrip, India's largest online travel booking company, faced the harsh reality of the coronavirus pandemic's impact on the travel industry. The company had to lay off 350 employees, nearly 10% of its staff. In this article, we'll discuss what happened, why it happened, and the potential future impact of these layoffs on the company and the industry.

Why did MakeMyTrip have layoffs?

MakeMyTrip's decision to lay off 350 employees was primarily driven by the impact of the coronavirus pandemic on its business, particularly its retail operations. The company initially tried to avoid layoffs by implementing pay cuts across the board, but as the pandemic persisted, they had no choice but to let go of employees. Founder Deep Kalra discussed the difficult decision and its effect on the company's leadership team, as well as the measures taken to support the affected employees, such as extending benefits and allowing them to keep their laptops.

The broader travel and tourism industry has also been severely affected by the pandemic, with the World Travel and Tourism Council warning of potential job losses worldwide. MakeMyTrip's revenues plummeted from $500 million a month to zero, forcing the company to cut costs in various ways, including reducing variable costs related to marketing and sales promotion, negotiating with outsourced partners, and implementing personal salary cuts at all levels of the company.

Financial Impact and Future Directions

MakeMyTrip has taken to manage its finances amidst changes, including the reduction of variable costs in marketing and sales promotions, alongside effective negotiations with outsourced partners. These actions demonstrate the company’s strategic adjustments to maintain financial health.

Following the layoffs, MakeMyTrip has concentrated on reducing overhead while ensuring employee morale remains high. The company has observed a resurgence in domestic flights, signaling a recovery phase. MakeMyTrip is actively working towards restoring salaries and remains optimistic about its ability to surmount the obstacles brought on by the pandemic.

Impact on Industry

The future impact on the travel industry is expected to be significant, with the World Travel and Tourism Council warning of 50 million potential job losses worldwide, particularly in Asia, including India. MakeMyTrip's layoffs, while a difficult decision, were necessary due to the pandemic's impact on their business. The company has taken steps to support affected employees and has begun restoring salaries as business recovers. The long-term effects of these layoffs on MakeMyTrip and the travel industry remain uncertain, but the company remains optimistic about overcoming pandemic-related challenges.


MakeMyTrip laid off 350 employees due to the pandemic's impact on the travel industry, with revenues dropping from $500 million to zero. Despite cost-cutting measures, layoffs were unavoidable. The company supported affected employees and has started restoring salaries. The future remains uncertain for MakeMyTrip and the travel sector, with millions of potential job losses worldwide. The company's ability to adapt and overcome these challenges will shape their standing in the industry and influence future decisions.