Affected by COVID-19 Pandemic, Payfazz Layoffs 10% of Its Employee
As one of the startups in the field of Financial Technology, PT Payfazz Teknologi Nusantara (PAYFAZZ) is also not spared from the impact of a downturn in the world economy which requires companies to be able to adapt, including by making efficiency. Various methods have been taken by the company in its current condition, but this has not been enough to sustain the company’s performance to remain sustainable.
The condition of the world economy since the outbreak of Covid-19 caused almost all industries to decline. The uncertainty of the global economy due to the economic crisis caused by this pandemic made some companies have to take steps to adapt so that they can survive and be more sustainable.
Many ways can be done, starting from increasing company revenue, reducing company budget costs, reducing IT costs, to other savings so that the company can continue to operate and be profitable.
Coronavirus outbreaks make almost all business sectors have decreased. One of them, financial technology startup PT Payfazz Teknologi Nusantara (Payfazz), which had to lay off work relations (layoffs) 10% of total employees as an effort to financial efficiency.
The uncertainty of the global economy due to the economic crisis caused by this pandemic made some companies have to make adjustments to adapt so that they could survive and be more sustainable.
Various methods were used, ranging from increasing company revenues, cutting budgets, the efficiency of IT costs, and other savings so that companies can continue to operate and be profitable.
But this is not enough to sustain the company’s performance to remain sustainable. “This tough decision must be taken to be able to maintain the sustainability of the company in the future,” Payfazz CEO Hendra Kwik said in a press release on Thursday (6/18).
Employees who were Laid-off will Still Get Their Rights
He stated the company would continue to give the rights of employees who were laid off following applicable regulations. “We try to continue to support employees affected by the reduction by giving their rights by regulations,” said Hendra.
Forms of benefits provided by PAYFAZZ to employees include full salaries for June 2020, severance packages, rewards packages according to tenure, leave compensation package based on Law No. 13/2003, and applicable Company Regulations and Health insurance until October 2020. The company also provides assistance for career services for affected employees.
To continue the careers of employees affected by layoffs, the company also assists with transition services. Going forward, Payfazz will carry out a process of improving governance and the company can continue to run continuously.
Corona outbreak also hit several startups such as Grab, OYO, and iFlix. All three did employee layoffs because their business was hit by the corona pandemic. The Indonesian E-Commerce Association (idEA) estimates that layoffs will still occur despite entering a new normal phase.
Contribute to Deal with a Pandemic
As a step to support the prevention of the transmission of the virus so that it does not become more widespread, several parties have joined in helping each other to help in the prevention of Corona Covid-19 virus transmission.
This condition encourages Payfazz to overcome the spread of the virus through Payfazz Cares for an agent campaign: #CorahCorona So this may be aimed at providing motivation and enthusiasm to agents who are at the vanguard of continuing to provide access to financial services and daily needs to the people of Indonesia during this pandemic.
As a form of Payfazz’s concern for agents, through the Corporate Social Responsibility (CSR) program, Payfazz distributed 10,000 masks to Payfazz agents throughout Indonesia that will be carried out in stages.
The masks distributed were non-medical cloth masks, which were expected to protect agents from the potential transmission of the COVID-19 virus so that agents could still provide financial services to the entire community.