Oyo Has Fired 7000 Employees In China In Last 5 Months; 5 Founding Members Of Oyo China Have Quit
Firing employees is not new for OYO, and they haven’t limited it to India. Oyo has reportedly fired a huge amount of people,more than 7000, from their branches in China, and is left with a skeleton crew now.
Oyo has fired 5000 people all over the globe recently thanks to Coronavirus, which, ironically, originated in China.
Read on for the whole scoop!
Oyo Fired More Than 7000 Employees In China Post November
A local media outlet Jiemian reported that since November, Oyo has fired more than 7000 employees citing reasons of downsizing the organization. The number of employees in China was 9800 in November 2019, which went to 2700 as of March 10.
The report also stated that the number of employees has been slashed by thousands each month ever since the beginning of 2020.
SoftBank based Oyo has fired almost half of its employees from every department. A former China executive has revealed that the technical support team has been reduced by 60%.
In addition to that, eight senior management members have quit the company since July, of which, five are the founding members of Oyo China. This includes vice president of marketing and brand Zhang Jiahao and the vice president of operations Han Feng.
Oyo has responded to this, saying that the company is looking to restructure and optimize the regional management and this may affect the employee count as well. The company said that the number of affected employees “will come out in the next few weeks.”
Oyo’s Operations In China Account For More Than Half The Losses
Oyo seems to be incurring more losses than profits, with the annual losses of the company increasing to USD 335 million in 2018-19, which were USD 52 million in the previous year. Of this, its China operation made up for USD 197 million in net losses, which is almost 60% of the total losses.
Oyo had big plans for China when it set up shop in the country in 2017, with 10,000 hotels as their partners. In September 2019, Oyo declared that they had 10,000 employees and planned to double the number by the end of 2020. But that plan will probably remain a plan.