OYO Starts Laying Off Employees In India, 2,400 Employees Affected

OYO Hotels and Homes have begun their process of laying off their employees to enhance their functioning. Employees from Delhi and Jaipur were affected by the process in the first week. A report suggests that over 300 employees have been handed over Pink slips this week. OYO plans to layoff over 2,400 employees from the firm. This move comes at a stage where India is struggling with its private sector due to the stagnant growth of the economy.

OYO has over 12,000 employees from which it will slash 20 percent of the workforce by March-end. An email was sent to employees by founder Ritesh Agarwal on January 13 which said that in 2020, the company plans new strategic objectives, in which several teams will be reorganized including the team leader. He also informed that after things are executed and are in line, some roles in the organization will become redundant. He pointed out that the company will be more synergized with technology. This will help OYO to remove duplicity of effort. This will be enforced across all business locations. The E-mail also said that this is the reason that OYO has asked impacted colleagues to choose a career outside.

Meanwhile, employees whose job continues to remain intact received E-mail thanking them for attending the all-hands meeting. It said that re-organization in OYO has not impacted you. It requested the employees to maintain confidentiality about the matter due to the situation inside the company. It directed the employees to continue their daily work schedule including work plan, field visits, meetings and calls as planned.

However, Ritesh Agarwal apologized to employees affected due to the layoffs and said that the company is supporting and providing assistance for them. According to media reports, OYO also slashed five percent of its workforce in China too. They are planning to streamline and marginalize the expenditure for operations in order to sustain in the industry.