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OYO Lays Off Thousands of Employees Outside India as Revenue Drops Over 50%

The Founder and CEO assured that Indian employees would remain unaffected from this exercise

Oyo Hotels and Homes, an Indian budget lodging service has placed thousands of its employees in the US and other markets on leaves and furloughs for more at least two months without pay as the hospitality company is battling with the ongoing coronavirus pandemic which is impacting almost every sector on a global scale. The company has not disclosed the exact number of employees nor the exact markets but has assured that the employees in India will remain unaffected from the employment cuts.

In a video message, Ritesh Agarwal, founder and chief executive officer of OYO confirmed that the revenue generation and occupancies have dropped by 50-60% which is significantly more than that the expected fall which was 10-15%. Due to the drop incurred, the company’s balance sheet came under extreme stress. In order to revive the numbers, the company started an exercise in January where it laid off around 600 employees in China and around 1,200 in India. According to reports by Bloomberg, last month the hospitality company also laid off 5,000 employees across the US, China and India as part of the restructuring exercise to cut costs and regain profits