Oyo Rooms Founder Ritesh Agarwal informed that their business globally has reduced by 50-60%, and they will be putting ‘thousands’ of American employees on furlough, which is unpaid leave.
However, no Indian employee will be fired, as per Ritesh Agarwal.
And another silver lining: As the Chinese economy is picking up, they are witnessing 5% increase in business, on weekly basis.
Thousands of Americans On Unpaid Leave
Oyo Founder Ritesh Agarwal has informed that thousands of employees in America and other markets will be asked to opt for temporary unpaid leave, which is also known as furlough.
However, no jobs will be terminated in America or any other market.
He said, “While taking these necessary and tough decisions in the interest of the health of the business and its long-term sustainability across markets world over, the startup assured that it is not considering job-cuts at any location at this time, despite the significant economic pressures.”
Oyo Rooms Will Not Fire Any Indian Employee
Oyo Rooms have more than 10,000 employees in India, and despite an unprecedented lockdown of 21 days, and almost zero hotel bookings, Oyo Rooms will not fire any Indian employee.
Salaries and healthmare/medical benefits for all Indian employees will be paid on time, and there shall be no disruption in this regard, Ritesh Agarwal confirmed.
The best way forward for Oyo Rooms, as of now, if temporary unpaid leaves for several employees, so that the company doesnt have to resort to mass level firing in order to survive.
Ritesh Agarwal has already announced that he will forego 100% of his salary and contribute heavily to his own company’s finances, as revenues have dropped by 60%.
Besides, Oyo Rooms has also partnered with Apollo Hospitals for providing isolation facilities for all quarantined patients of coronavirus. This will be on a paid basis.
However, some hotel owners in India are upset with Oyo Rooms, since they have stopped almost all payments, ever since the lockdown started.
We will keep you updated, as more details come in.