Hospitality aggregator OYO Hotels & Homes has reportedly started to send out emails to notify its employees whether they have been retained by the company or not. Recently, in an internal email to employees, OYO founder and group CEO Ritesh Agarwal had talked about the company's decision to reduce workforce in coming days.
While Agarwal did not disclose total employees who will be retrenched, the number is estimated to be around 1,000. Employees in New Delhi and Jaipur centres were notified about the lay-offs via personal emails on Monday. Employees in Gurugram branch of the company were informed on Tuesday. The layoffs include high-level profiles like city heads, who run the operations of the chain in a city.
Sacked OYO employees who have worked with the company for 1 year are getting one month's salary, those who have worked for two years are being paid two months' salary, and so on. The company is also paying variable pay to the sacked employees, along with gratuity and three months of medical coverage, the report said. OYO has arranged townhalls with senior leaders sent to major cities after the lay-offs, it further added. The hospitality unicorn told its employees that it is doing much more than the mandated HR processes followed by other companies in India.
In an internal mail to the employees of OYO in India and South Asia, Group CEO Ritesh Agarwal said that asking some of the colleagues to move to a new career outside of OYO has not been an 'easy decision'.
One of the implications of the new strategic objectives for 2020 is that, like the leadership team, OYO will reorganise more teams across businesses and functions, Agarwal said. The strategic objectives of the company are: sustainable growth, operational and customer excellence, profitability, and training and governance, he added.
And this means that, unfortunately, some roles at OYO will become redundant as the company further drives tech-enabled synergy, enhanced efficiency and removes duplication of effort across businesses or geographies, Agarwal wrote in the mail.