Oyo founder Ritesh Agarwal in a video message to his employees has said that the company's revenues and hotel occupancies have taken a major hit due to coronavirus outbreak.
He said Oyo's revenues have dropped between 50 per cent to 60 per cent across the world. Hence, Oyo will be putting thousands of its employees, who are working in the US and UK markets on temporary leave or furloughs. The furlough is expected to be for a minimum of 60-90 days. The 26-year-old billionaire also said that he would not put Indian employees on leave as of now, Times of India reported.
Agarwal added that Oyo "intends to do no or negligible layoffs" as part of the new restructuring exercise.
Oyo, in January this year laid off 15 to 20 per cent of its 12,000 employees in India as part of its restructuring measures. Globally, Oyo has about 25,000 employees.
In the video message, Agarwal also spoke about Oyo's comeback in China. He said that the company was growing at 5 per cent week-on-week as the economy starts opening up again.
The development comes after Oyo told its hotel partners it was unfit to pay "minimum guarantee" for their properties, citing force majeure clauses.
Oyo recently raised $1.5 billion in funding from its largest shareholder-SoftBank Vision Fund. The company said its total revenue for FY19 was $951 million (Rs 6,780 crore). However, its consolidated loss grew over six-fold to $335 million (Rs 2,390 crore).