Days after hospitality and travel tech startup Oyo said it was letting go of about 600 employees, founder and CEO Ritesh Agarwal pitched for those impacted by his decision and urged companies to recruit the outgoing workers.
“Many talented OYOpreneurs are having to part ways with OYO and we want to ensure they receive as much assistance and support as possible. For companies that are hiring in tech, reach out to us at firstname.lastname@example.org and we will share a directory for rehiring our outgoing colleagues,” he wrote in a LinkedIn post on Monday.
Last week, the IPO-bound startup said it was downsizing the product and engineering teams, corporate headquarters and the OYO vacation homes teams, while it adds people to the partner relationship management and business development teams. Further, even as it plans to fire at least 600 employees, the company said it will conduct fresh hiring of 250 members. It has a workforce of around 3,700 employees.
Typically, multinational companies use outplacement agencies to look for other employers who are hiring. The expenses are borne by the company concerned and not the employees. In the latest round of layoffs, several Indian tech companies and startups have started doing the same.
Agarwal had earlier said: “…It is unfortunate that we are having to part ways with a lot of these talented individuals who have made valuable contributions to the company. As Oyo grows and a need for some of these roles emerges in the future, we commit to reaching out to them first and offering them the opportunity.”
These developments come as Oyo prepares to go public in the first quarter of 2023, while aiming for a valuation of about $7-8 billion, lower from $10 billion it was initially eyeing. The company had also filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) last year in October to raise `8,430 crore, but deferred the plan.
The company’s revenue dropped slightly to `1,445 crore in Q2FY23 compared with Q1FY23’s `1,459.3 crore, a fresh addendum to its draft IPO filed with the Sebi last month showed. Overall, the company’s revenue for H1FY23 stood at `2,905 crore, an increase of 24% year-on-year (y-o-y).
Oyo’s net losses also reduced from `414 crore in Q1FY23 to `333 crore in Q2FY23. Further, the company saw its adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) jump to `56 crore, an eight times rise from `7 crore in Q1FY23, thanks to the increase in the monthly revenue per hotel or the gross booking value. Overall, in H1FY23, its adjusted Ebitda improved to `63 crore profit from a loss of `280 crore in H1FY22.