Oyo Rooms Firing Upto 800 Employees Due To This Reason; Company Says It’s Normal Exercise
Yet again, the news is that Oyo Hotels and Homes has laid off 600-800 employees citing the reason of reducing costs further.
Read on to find out which employees will now be fired from the India based hospitality company.
OYO Fires 600-800 Employees As Restructuring Exercise
Sources close to the development have now revealed that Oyo will be laying off as much as 600 to 800 employees with the aim of reducing costs further. As per reports, most of these staff members are from the departments of renovation and operations. Apparently, OYO will be shutting down these departments and the focus will be on the revenue sharing model with its partner hotels.
The hotel partners will now be charged a share of the entire revenue that is earned by them on their properties. There will not be a minimum guarantee, management staff will also not be provided at the premises of the hotel. This was done initially in order to ensure consistency and keep the quality in check as well.
As per reports, the hotel owners will be responsible for the operations and the marketing of the properties will be taken care of by Oyo.
OYO will be offering these employees to surrender 25 percent of the unvested deeply discounted ESOPs that were granted to them in June instead of a cash benefit. This cash amount will be as much as 25 percent of their fixed salary as of March 2020. Other than this, the company is also offering them regular compensation, which includes notice pay and leave encashment.
OYO Denies Claims: No Significant Restructuring Done Right Now
However, OYO has denied the claims, especially the number of employees being fired from the company.
A spokesman for OYO has said, “We have done no significant restructuring at this point in time. There are some localised actions basis change in business models and our move towards product and technology to serve our partners and customers keeping in mind the current business realities. We have no further comments to offer.”
In June, there were reports of OYO offering all its employees deeply discounted ESOPs as compared to Restricted Stock Units or RSUs.