Hospitality chain OYO has announced on Saturday (December 3) to lay off some of the company's employees. The company said it would lay off 600 employees out of its workforce of 3,700. OYO has taken this decision to change its organization structure. Apart from this, the company will also hire 250 new employees.
Homegrown hospitality chain startup OYO said in a statement, 'We are reducing the size of our product and engineering team, corporate headquarters and OYO Vacation Homes teams. At the same time, we will also hire people in our partner relationship management and business development teams.
Talking about the changes in the company, OYO Founder and Group CEO Ritesh Agarwal said, “We will make every effort to ensure that most of the people we are laying off are gainfully employed. Every member of the OYO team and myself will actively support the strengths of each one of these employees.
Ritesh Aggarwal further said that we will help the employees in outplacement. Their medical insurance coverage will be continued for an average of 3 months. It is unfortunate that we have to part ways with so many talented individuals who have made valuable contributions to the company.
Ritesh Agarwal further added that as OYO grows and the need for some of these roles emerges in the future, we are committed to reaching out to those employees first and providing them opportunities. OYO has laid off for the second time in the last 2 years. In December 2020, the hospitality startup laid off 300 employees. The retrenchment was part of the company's strategy to build a sustainable business in the long run.
Apart from the layoffs, the hospitality chain also plans to hire 250 new employees. Ritesh Agarwal, who founded the startup, also said that the company's product and engineering teams are being merged for smooth functioning. The company further said that downsizing in tech is also happening in teams that were developing pilots and proofs of concepts such as in-app gaming, social content curation and Patreon facilitated content.
Stating the need for new hiring, the company said it will add 250 employees to its relationship management and business development teams to ensure better consumer and partner satisfaction. These employees will help increase the number of hotels and homes on the platform.