Oyo, the online hotel booking company, was a hit among the 90s and 2K youth. Currently the company is having trouble getting new investments due to the economic slowdown. Thus reforms have been initiated in the organizational structures. As part of that, they have decided to cut 600 out of 3,700 employees. All of them have worked in technical and corporate sectors.
Softbank-invested Oyo offers discounted hotel room bookings at tourist destinations. In 2020, the hostel industry was hit hard by the Covid problem. Due to strict restrictions on travel, the sector’s revenue has completely collapsed. Oyo’s business also suffered because of it. Oyo came out of a loss of Rs 10,000 crore before Kovid. Its loss in 2020 is Rs.3,382 crore. In 2021-22, the loss has come down by 45% to Rs.1,892 crore.
In this case, Oyo is planning to raise funds through the stock market in 2023. By then there is a compulsion to maximize revenue and minimize losses. It says it is implementing wide-ranging changes in its organizational structure. It has started hiring people in sales and partner management and business development divisions, while cutting back on divisions such as product and engineering, corporate headquarters, Oyo Resorts.
In this regard, OYO CEO Ritesh Aggarwal said: We are working to ensure gainful employment for most of the employees we are releasing. Every employee in the OYO team is talented. It is unfortunate to fire someone who has contributed so much to the company. He said that when Oyo grows, when people are needed for certain positions in the future, we promise to approach them first and give them opportunities.
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