OYO, the Indian hotel chain has promised its employees that there will be no layoffs in India even though the situation is not good due to the corona spread. Unline in India, the staff in the US and other countries were being sent on ‘temporary leave’.
Ritesh Agarwal, the CEO of OYO has said that they are keeping their promise to Govt. of India that there will be no layoffs or salary cuts to all of its 10,000+ employees. Just 3 months back, the company has finished its latest round of layoffs as of recognition strategy to cut the costs. During that period, OYO has laid off around 30% of its US employees and 800 Indian employees.
He also said that no other sector would have impacted bigger than travel, tourism and hospitality sectors. The company is expecting a 10-15% losses due to this lockdown and corona situation. Globally, the overall revenues of the company have fallen over 50-60%.
The company is said to be thinking of all the different options in order to keep the jobs safe. Some of them are giving temporary leaves to OYOpreneurs, etc. However, they are planning to take back their employees on a full-time basis, once this situation is over.
OYO is back on track in China as the situation eases there. Also in Japan, Denmark the company is back to doing good. Recently, OYO’s competitor Treebo has given its employees an option for voluntary resignation. While in MakeMyTrip, the founders have taken a salary cut for the entire year.