Oyo Rooms Fires 5000+ Employees As Coronavirus Destroys Tourism; 17% Workforce Now Jobless
This can be coronavirus’ biggest strike against salaried employees, anywhere in the world.
In a big decision that has created ripples across the corporate world, Oyo Rooms has decided to fire 5000+ employees, globally.
This means that 17% of entire workforce will be reduced.
Oyo Rooms: 5000 Employees Will Be Fired
Oyo Rooms has announced that more that 5000 employees from their offices and hotels, all over the world, will be fired.
Maximum terminations would happen in China, where tourism sector is severely hit due to the outbreak of coronavirus.
In India too, several thousand employees will be fired,
It is being speculated that around 3000 Chinese employees will be fired, which is 50% of their entire workforce, and a percentage of temp workers, numbering around 4000, will be fired.
For terminations in India, no specific number has been give, but analysts are stating that it can be anywhere between 1000 to 2000 employees.
17% Workforce Will Reduce At OyoRooms
Globally, there are around 30,000 employees in Oyo Rooms. After this ‘restructuring’ exercise, wherein 5000 employees will be terminated, there will be 25,000 employees remaining.
Oyo Rooms recently was valued at $10 billion, making them world’s 3rd biggest hotel chain. This massive termination of employees is seen as a big step towards sustaining operations, and ensuring more growth.
A spokesperson said, “This is the total number of employees impacted as part of the global restructuring exercise announced in January 2020 and includes all markets impacted like India, China, and the US, already publicly reported,”
Without doubt, their operations in China took the biggest hit, where they operate 10,000+ hotels.
Oyo recently announced that they incurred a loss of $197 million from their operations in China. Now with coronavirus outbreak, their Chinese operations have further taken a hit.
We will keep you updated, as more details come in.