SoftBank-backed hotel startup Oyo will cut 5,000 staff as coronavirus bites

• SoftBank-backed hotel chain startup Oyo is set to cut about 5,000 people, or 17% of its workforce, in the wake of the coronavirus outbreak.
• In an interview with Bloomberg published Wednesday, Oyo's CEO Ritesh Agarwal said the move would leave the firm with around 25,000 staff worldwide - down from around 30,000 as of January.
• Agarwal admitted the coronavirus outbreak has "hit us" in China, describing it as a "tough time for our hotel partners."
• Oyo's downsizing comes as SoftBank's portfolio of startups faces growing pressure to prioritize profitability.
• Business Insider has approached Oyo for comment.
• Visit Business Insider's homepage for more stories.

SoftBank-backed hotel chain startup Oyo is set to axe thousands of jobs as the coronavirus outbreak begins to bite.

In an interview with Bloomberg published Wednesday, Oyo's CEO Ritesh Agarwal said the move would leave the firm with around 25.000 staff worldwide - down from around 30,000 as of January.

Citing anonymous sources, the publication added that staff based in China, the US and India will be fired, including roughly 3,000 China-based employees.

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Agarwal admitted the coronavirus outbreak has "hit us" in China, describing it as a "tough time for our hotel partners."

Oyo's downsizing comes as SoftBank's portfolio of startups faces growing pressure to prioritize profitability over expansion - especially in the wake of WeWork's calamitous, ultimately canceled IPO last year.

Masayoshi Son's SoftBank was an early backer of Oyo and has continued to invest heavily in the company.

In its latest funding round - a SoftBank-led Series F in October 2019 - Oyo raised $1.5 billion, with $700 million of that coming from Agarwal himself.

Business Insider has approached Oyo for comment.