Oyo Rooms Will Fire 2400 Employees In Next 4 Days; 20% Of Entire Workforce Will Be Slashed
Fresh reports are coming in, which has almost confirmed the thing we all feared: Oyo Rooms, the world’s 3rd biggest hotel chain and India’s biggest, is now all set to reduce their workforce by a drastic margin.
As per a report by ET, it has been stated that 20% of all employees or 2400 employees, will be fired in the next 4 days.
What exactly are the reasons behind this decision to terminate 2400 employees in one go?
Oyo Rooms Will Fire 20% Of Workforce In Next 4 days
Some unnamed insiders from Oyo Rooms have confirmed that before this week finished, 2400 employees from Oyo Rooms will be fired.
As per the insider source, Oyo Rooms is desperately looking at trimming their workforce by 20% in the next few days. Infact, another round of layoffs will begin from March onwards.
He said, “The intent is to bring the headcount down by another 20% at least, and launch another resizing exercise by the end of March”
Oyo founder Ritesh Agarwal has already sent an email to all employees, stating that terminations will now begin, and had also apologized for the same.
We had estimated that around 1000 employees will be fired, but now, the count will be much more.
In the letter to all employees, Ritesh had said, “I have no hesitation in admitting that growing at the pace at which OYO has in the past few years, we sometimes went ahead of ourselves and pressure-tested our organisation at multiple levels. This year, we are taking steps to address this.”
There are 12000 employees working with Oyo Rooms in India right now.
Oyo Shutting Off Major Businesses
The decision to terminate employees, and reduce workforce is also being complemented by shutting down major businesses.
SilverKey business vertical, which extensively focussed on corporate clients, has almost been shut down. At the same time, there other hospitality brands such as Oyo Life, Oyo Homes have been streamlined and aligned with their primary business operations.
They have also reduced investments in WeddingZ, their wedding centric business.
Besides, they have offloaded around 25% of their properties, pan-India.
We will keep you updated, as more details come in.