Taxi giant lays off 1,300 employees
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Vinasun has cut its staff by 1,300 in the first nine months as it restructures to reduce costs amid the Covid-19 pandemic. The staff cut has lowered the company’s salary costs by 35.5 percent year-on-year to VND80 billion ($3.4 million), saving it VND4.9 billion each month. It now has 4,480 employees.
However, lower salary costs have not been enough to offset Covid-19 impacts. The firm’s revenue in the first nine months plunged 52 percent year-on-year to VND734.7 billion, with business mostly frozen in April during the nationwide social distancing campaign.
It has posted a loss of VND185 billion so far this year, compared to a post-tax profit of VND94 billion in the same period last year.
It forecasts a post-tax loss of VND115 billion this year.
Company leaders have said they expect the recovery process to be slow due to a lack of foreign visitors. After Vietnam closed its borders and stopped international flights in March, only a few routes have resumed operations
Questions & Answers
Q.How many employees did Vinasun have before the recent staff cuts?
How many employees did Vinasun have before the recent staff cuts?
Vinasun cut 1,300 staff in the first nine months and now has 4,480 employees. This indicates that before the cuts, the company employed 5,780 people.
Q.What was the total revenue for Vinasun in the first nine months of this year?
What was the total revenue for Vinasun in the first nine months of this year?
The firm's revenue in the first nine months plunged 52 percent year-on-year to VND734.7 billion. This amount reflects the impact of the Covid-19 pandemic on its operations.
Q.What is Vinasun's projected financial outlook for the entire year?
What is Vinasun's projected financial outlook for the entire year?
Vinasun forecasts a post-tax loss of VND115 billion for the entire year. Company leaders anticipate a slow recovery process, mainly due to the ongoing lack of foreign visitors.
Q.By how much did the staff cuts reduce Vinasun's salary costs?
By how much did the staff cuts reduce Vinasun's salary costs?
The staff cut lowered the company’s salary costs by 35.5 percent year-on-year to VND80 billion, saving it VND4.9 billion each month. This was part of a restructuring effort to reduce costs.
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