Covid-hit Oyo lays off about 300 workers

By: |
December 9, 2020 2:30 AM

Consolidated losses of the Gurgaon-based firm soared to $335 million for the year ended March 2019 from $52 million in FY18, as expansion into international markets, including China, entailed heavy costs.

The latest development comes nearly eight months after the company initiated the first set of measures to deal with the pandemic-led business disruption.The latest development comes nearly eight months after the company initiated the first set of measures to deal with the pandemic-led business disruption.

Oyo Hotels & Homes has laid off some employees in India as the Covid-hit hospitality firm rejigs its businesses to check costs. The move is understood to have impacted about 300 staff. Oyo did not reveal the details.

A company spokesperson 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.”

Imposition of lockdowns and restrictions on travel by governments across the world to check the spread of Covid-19 crippled the hospitality business. Companies had to cut jobs and implement pay cuts to rein in expenses. Although the phased reopening of economies have helped businesses to an extent, complete revival seems distant as the pandemic, which has been there for a year now, fails to subside. “We are still not at the best place, a lot more work has to be done,” founder & group CEO Ritesh Agarwal told employees last week.

Consolidated losses of the Gurgaon-based firm soared to $335 million for the year ended March 2019 from $52 million in FY18, as expansion into international markets, including China, entailed heavy costs.

The latest development comes nearly eight months after the company initiated the first set of measures to deal with the pandemic-led business disruption.

In April, Oyo had asked all its India employees to accept pay cuts besides sending a section of employees on leave “with limited benefits” from May-August. The company had further extended the leave with limited benefits programme by another six months ending February 28, 2021. The impacted staff had also been given the option to opt for a voluntary separation programme (VSP).

Sources said the impacted employees have been offered a list of benefits at par or above industry standards in terms of notice pay, leave encashment, earned incentives (100% of PLI) and gratuity.

The employees also have an option to surrender and offer cancellation of 25% of the unvested deeply discounted ESOPs (RSUs) granted in June 2020, in lieu of cash benefit equal to 25% of his March 2020 drawn fixed salary.

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