Oyo To Shed Over 2,400 Employees, May Let Go More in March
Oyo may lay off about 2,400 employees, which constitute 20 percent of its total workforce in India, its founder Ritesh Agarwal said in emails to the employees early this week.
The hospitality firm reportedly plans to shed more employees in the coming months as part of its restructuring and reorganisation and avoiding duplication of efforts. The layoffs include high-level profiles like city heads, who run the operations of the chain in a city.
In an internal mail to the employees of Oyo in India and South Asia, the company's founder and Group CEO Ritesh Agarwal stated that asking some colleagues to shift to a new career outside of Oyo has not been an 'easy decision.'
The mail, however, did not mention the number of employees that are being let go. But, some sources estimated the number at more than 2,400 and said the reason was 'right-sizing.'
Employees in New Delhi and Jaipur were notified about the lay-offs through personal emails on Monday and those in Gurugram were informed on Tuesday.
"One of the implications of the new strategic objectives for 2020, is that, like the leadership team, Oyo will reorganise more teams across businesses and functions," Agarwal said.
The strategic objectives of the company as the CEO mentions have been- sustainable growth, operational and customer excellence, profitability, and training and governance.
"And this means that, unfortunately, some roles at Oyo will become redundant as the company further drives tech-enabled synergy, enhanced efficiency and removes duplication of effort across businesses or geographies," Agarwal said.
"As a result, we are asking some of our impacted colleagues to move to a new career outside of Oyo. This has not been an easy decision for us," he added.
He also claimed that Oyo is doing everything it can to ensure that the outgoing colleagues receive as much assistance and support as possible through this transition.
"Every Oyopreneur is important to Oyo and ensuring their well-being both during and after their tenure is our number one priority. I want to thank them for their efforts and apologize for the impact this is causing," he added.
As an organisation, Oyo stands strong with its people - not just with those who are impacted, but also with those who will remain an integral part of Oyo beyond today, Agarwal said.
Oyo, founded in 2013, has a footprint in over 500 cities across 10 countries which include India, China, Malaysia, Nepal, UK, Japan etc.
The firm has been facing an increasing backlash from its hotel partners.
Reports also suggest that Oyo may not make a profit in its two biggest markets until 2022, as losses continue to increase.