OYO sends US staff on ‘temporary leave’ but Indian jobs are safe

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OYO sends US staff on ‘temporary leave’ but Indian jobs are safe
  • OYO founder Ritesh Agarwal had estimated a 15-20% drop in revenues due to Covid-19. However, the company’s revenues dropped by over 50%-60% globally.
  • However, it has promised its India employees that there would be no layoffs here.
  • In January 2020, as a part of its reorganization strategy to cut costs, OYO laid off a third of its employees in the US. At the same time, it had let go off over 800 employees in India.
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Indian hospitality chain OYO has announced that it won’t lay off employees in India in spite of the debilitating impact of Covid-19 on its business. However, it started sending its employees and US and other countries on ‘temporary leave’.

“Keeping its promise to the government of India, OYO is committed to zero actions that impact employment status and salaries of ten thousand plus OYOpreneurs on payrolls and tens of thousands of OYO managed assets staff, during this unprecedented period of a 21-day countrywide lockdown,” said Ritesh Agarwal, founder of OYO.

The company has just finished a round of layoffs barely three months back. In January 2020, as a part of its reorganization strategy to cut costs, OYO laid off a third of its US staff along with 800 employees in India.

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In a video message to its employees, Agarwal said that he cannot imagine any other industry being worse impacted than travel, tourism and hospitality due to coronavirus. Earlier Agarwal had estimated a 15-20% drop in revenues and occupancy over Covid-19. However, the company’s revenues have dropped by over 50%-60% globally.



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The coronavirus has hit the tourism industry as travel has come to a complete halt due to lockdowns across the world. Hence, OYO said that it needs to ‘tighten its belts’.

“Basis careful consideration of all possible options, this decision of instituting furlough or temporary leaves for a certain number of OYOpreneurs is the best way to ensure jobs are safe while keeping costs in check. This option will enable OYO to continue supporting healthcare coverage and other associated benefits, which is important during such tough times,” said the company’s statement.

However, it has said once the crisis is over, it would take back its employees on a full-time basis. As the situation recovers in China, OYO has seen its demand pick up in growth. The company said that it has seen green shoots of recovery in markets like China, Denmark and Japan.

Yesterday, its counterpart Treebo hotels gave the option of voluntary resignation to its employees. The founders of MakeMyTrip, a pioneer in the travel industry, took a salary cut for the entire year.

Agarwal had earlier announced that he will not take any salary for the rest of the year, while the leadership team at OYO is voluntarily taking a 25% pay cut.

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