In May 2020, the Sequoia-backed travel startup Flynote, based in Bengaluru, laid off over 90 employees from its total workforce of 130, representing more than 69% of its staff. This drastic reduction was a direct result of the COVID-19 pandemic and the ensuing nationwide lockdown, which devastated the travel and tourism industry. The company cited a severe lack of funds, having nearly depleted the ₹14 crore raised in 2019, and was forced to make permanent layoffs to stay afloat. Notifications were sent via email in early April, with the layoffs effective from March 31, 2020. While co-founders claimed to have paid most salaries and set up a customer refund fund, some employees reported missing March salaries and a lack of severance. As a consumer-facing travel startup offering customized tour packages, Flynote exemplifies the severe impact the pandemic had on early-stage ventures in the sector.
