IPO-bound OYO To Fire 600 Employees In Plan To Layoff 16% Workforce For Organizational Restructuring
Hospitality chain Oyo Hotels is laying off 600 employees in its corporate and technology departments, i.e. about one sixth of its total workforce of 3,700 (approx 16%). On the other hand, the company said it will be hiring 250 people.
Amid the impending rollout of its much-awaited IPO, hospitality chain OYO Hotels has said that it¡¯s cutting 600 jobs in its corporate and technology departments, i.e. about one-sixth of its total workforce (approximately 16%).
An OYO spokesman provided the numbers but did not elaborate on future cuts or restructuring. The company had 3,700 employees before the reduction, as per Bloomberg.
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Firing 600, Hiring 250
OYO said it is making 'wide-ranging' changes in its organizational structure. However, the company said it will also go for hiring fresh staff.
The company is downsizing its product and engineering teams, and the OYO vacation homes teams, while it plans to add people to the partner relationship management and the business development teams.
It said it will be hiring 250 people primarily in its relationship management teams to ensure 'better' consumer and partner satisfaction and in business development teams to help scale up the number of hotels and homes on its platform.
OYO said the downsizing in tech is also happening in teams that were developing pilots and proof of concepts such as in-app gaming, social content curation and patron-facilitated content, as per ET.
The hospitality giant also said that members of projects that have now been 'successfully developed' and deployed such as ¡®Partner SaaS¡¯ are being either let go or are being redeployed in the core product and tech areas such as AI-driven pricing, ordering and payments.
The company said it has also reassessed its corporate headquarters base afresh and is merging congruent roles and flattening team structures where needed.
Also Read: Salary Of OYO's CEO Jumps 250% To Rs 5.6 Crore In FY22
What OYO CEO Ritesh Agarwal Said About The Layoffs
facebook.com/riteshagarwal
"We will be doing all that we can to ensure that most of the people we are having to let go, are gainfully employed. Every member of the Oyo team and I myself will proactively endorse the strength of each of these employees," said founder and group CEO Ritesh Agarwal, as per ET.
"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," he added.
Also Read: Upcoming IPOs To Look Forward To In 2022-23
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