The tech-based Indian multinational Oyo Hotels and Homes Pvt. Ltd has announced a huge business restructuring leading to 600 job cut reducing 10% of its employee base.
In a statement, Oyo said the firm is undergoing a transformational process to align its business more competitively.
The statement by Oyo Chief Executive Office Ritesh Agarwal also confirmed the merging of Product and Engineering teams leading to the downsizing of the tech team, product and engineering team, Oyo vacation home teams, especially employees who were developing pilots, POC tasks and making content for social media and other platforms.
The CEO stated, “We will be doing all that we can ensure most of the people we are having to let go are gainfully employed.”
He also affirmed in the future when Oyo expands and there is a need for these roles, the presently laid-off employees will be approached first and opportunities will be offered to them.
The company also said the laid-off employees can avail of their medical insurance covers averaging up to 3 months.
Oyo is IPO bound and it first filed to go public in October 2021 but due to unpredictable market conditions, the share sale got delayed. The company also encountered a net loss of Rs. 4.14 Billion in the first quarter and Rs.3.33 Billion ($40.90 Million) in the second quarter of the financial year.
The company was founded in 2012 as a platform offering budget accommodations initially. Due to its distinct abilities and strategic approach, Oyo soon captured the mass market of the hospitality industry.
