Yet another news of layoffs is coming in from Oyo Rooms. This time, it will impact Cloud kitchen vertical, which Oyo has been pushing since last few months.
This new round of layoffs for Cloud Kitchen employes is another strategy for Oyo’s 2020 growth plans.
Oyo Rooms Will Fire 50% of Cloud Kitchen Employees
As per an exclusive report by Entrackr, it has been revealed that Oyo will terminate 50% of all cloud kitchen employees in the next few days,
There are approximately 300 employees in Oyo’s Cloud kitchen verticle, and this means that upto 150 employees will face terminations.
Cloud kitchens are a relatively new business model in the food and hospitality industry, where in companies open kitchen-only hubs, with no dining facility. They cater to online food aggregators such as Uber Eats, Zomato and Swiggy orders.
Oyo has been building their own cloud kitchen brands such as Adraq, O Biryani and others, which will be now shutting down, or downsized.
Future Of Cloud Kitchen By Oyo?
As per the report, Oyo will consolidate some of the brands under cloud kitchen with their rooms rental vertical, thereby providing a combined service of accommodation and food.
We don’t have much clarity into the future, since this is an unconfirmed report, and Oyo has not provided any statement regarding this.
An unnamed source said, “In its reorganisation bid, the company is merging the operating teams of hotels and cloud kitchens businesses,”
It seems that from now, only one manager will manage franchise hotels, TownHouse and the cloud kitchen business in smaller cities, where earlier, there used to separate managers.
Layoff Saga Continues At Oyo
This present layoff at Oyo is part of the 2020 growth plan, which Oyo Rooms founder Ritesh Agarwal shared with all the employees.
The job cuts have been described as corporate restructuring, and the reason for reducing jobs has been attributed to tech and streamlined, lean business model.
We have already reported that more than 2400 employees will be fired at Oyo Rooms by the time this week ends.
Earlier, reports had come in that around 3000 employees from India and China will be fired, even as several business verticals of Oyo Rooms are being shut down or scaled down.
We will keep you updated, as more details come in.
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