2000 OYO Employees to be Laid Off by February?

Guwahati, December 20, 2019:

Indian originated hospitality major OYO is in the process of downsizing its workforce by up to 2000 personnel and might carry on till February 2020, said reports.

Refusing to fully agree on the reports, the company claims it has its own way of assessing the performance of its employees through a rating system. It makes efforts to relocate some personnel to other functions or to retrain them constantly.

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It has been rumored that a Japanese investor, which is also one of the largest stakeholders in OYO, had advised all startups funded by it to look towards turning profitable as soon as possible. This was reported in the past, particularly after the WeWork fiasco where SoftBank took a huge hit.

According to reports, OYO Hotels & Homes had posted a huge loss last financial year, of Rs. 2,384.69 crore against a loss of Rs. 360.43 crore the previous fiscal.

The layoff of the OYO personnel is mostly faced by the ones drawing annual packages of close to ₹10-₹12 lakh.

It is to be mentioned here that OYO Homes & Hotels is an Indian hotel chain. It is the world's third-largest and fastest-growing hospitality chain of leased and franchised hotels, homes and living spaces.

Founded in 2013 by Ritesh Agarwal, OYO initially consisted mainly of budget hotels. Over a span of six years, the startup expanded globally with thousands of hotels, vacation homes and millions of rooms in hundreds of cities in India, Malaysia UAE, Nepal, China, Brazil, UK, Philippines, Japan, Saudi Arabia, Sri Lanka, Indonesia, Vietnam, the United States and more.

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The company's investors include SoftBank Group, Greenoaks Capital, Sequoia India, Lightspeed India, Hero Enterprise, Airbnb and China Lodging Group.

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