Oyo Will Fire 2000 Employees in India; Yahoo Japan Ends Partnership With Oyo Over Complaints From Partners
Oyo Rooms, world’s 3rd biggest hotel chain is reportedly firing 5%-20% of their overall employees in India. Interestingly, Oyo Rooms just got their new CEO, and this seems to be among the first decisions to be taken by him.
In related news, Yahoo Japan has canceled their partnership with Oyo in Japan, over rising complaints from Real Estate owners.
What exactly is happening with Oyo Rooms?
Oyo Is Firing 200 Employees: Report
As per a report from Entrackr, Oyo is firing 5% of their overall workforce in India. Since Oyo has 10,000 to 12,000 employees in India, this translates to layoff of 500-600 employees.
As per some insider sources, the layoffs will primarily happen in the partner-facing experience team and business development functions. It seems that there is some big movements across Oyo employees from Hyderabad, Bengaluru and New Delhi-NCR region.
In another report by ET, it has been mentioned that upto 20% of the workforce, which is upto 2000 employees can face terminations. This report claims that the employees are getting fired since business is down, after hundreds of hotels logged out of Oyo platform.
Entire teams of partner-facing experience team are being demolished, and they are being moved into business development or BD team.
Why Is Oyo Firing Employees
Recently, Rohit Kapoor took over the reins of Oyo’s South East Asia region as their CEO, thereby replacing Aditya Ghosh who was the earlier CEO.
As per reports, trimming the workforce was Aditya Ghosh’s idea, and one of the top priorities, which Rohit Kapoor is executing.
An insider source said, “The layoffs are in line with its strategy to curb expenses and bring efficiency in the aforementioned departments. Soon other departments may also go through a similar downsizing exercise.”
Oyo Rooms has responded to this news, and have issued a statement: “OYO continuously tracks performances of the individuals and depending on the results (a grading based system) and the individual’s interests, we may replace some candidates after allowing them to go through a performance improvement programme.”
Earlier, reports had come in that Oyo Rooms will fire 200 salespersons across India.
Yahoo Japan Ends Partnership With Oyo
In the month of March this year, Yahoo Japan forged a unique partnership with Oyo Rooms, by acquiring 30% stake in their Japan venture called Oyo Life.
Barely 8 months into this partnership, Yahoo Japan! Has ended their partnership with Oyo, and the reason is rising complaints from real estate owners who became part of Oyo Life.
In the month of November, Yahoo Japan sold back the shares which they had acquired, thereby ending the partnership.
We will keep you updated, as more details come in.