Oyo Rooms Fires 450+ Employees In This Country As Tourism Down By 99%; More Layoffs Can Happen
One of India’s largest hotel chains, Oyo Hotels & Homes is planning to reduce its operations in Japan, given the lessened demand and number of bookings due to the travel restrictions.
The company recently enforced employees in the US to go on leave without being paid, and then went on to fire them permanently.
Find out OYO’s plans about reducing footprint in Japan right here!
OYO Hotels Plans To Reduce Presence in Japan; Hotel Industry Facing Tough Situation
Chief Business Officer Ryota Tanozaki recently revealed that the company reduced its presence in Japan at the end of June by closing its offices in provincial centers of Japan, such as Sapporo, Sendai, Nagano, Hiroshima, and Omiya.
He also said that the company is planning to cut down its headquarters in Tokyo too, which is spread over two floors in an office building in Tokyo.
He said, “The hotel industry overall is facing a tough situation because of the virus, and we will connect employees who wish to find a new job with a recruitment agency.” However, nothing about the job cuts was spoken about by Tanozaki.
The workforce of OYO employees in Japan had also reduced to 150 from 600 last year in October.
OYO Plans To Scale Down Worldwide Operations; Domestic Tourism Suspended
Apparently, OYO Hotels and Homes is planning to slash its operations across the globe, and reducing its presence in Japan is a part of this plan. Even before the Coronavirus outbreak, OYO had already set its plan of scaling down operations in motion. The staff in China was also reduced by half, and the total employment across the globe was slashed by 5000 people.
Recently, the hospitality company will also be making every employee a shareholder in the company. OYO penned a letter to the employees, saying that they will be given deeply discounted ESOPs.
Moreover, the number of visitors who traveled overseas to Japan was 1700 in May, which was a sharp 99.9% fall from that of last year. Add to that the outbreak of the Coronavirus pandemic, and the domestic tourism was completely down to a zero.