Industry

OYO may lay off more than 1,000 people in India

One of the implications of the new strategic objectives for 2020 is that, like the leadership team, OYO will reorganise more teams across businesses and functions. Picture: File

One of the implications of the new strategic objectives for 2020 is that, like the leadership team, OYO will reorganise more teams across businesses and functions. Picture: File  

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The group’s founder and CEO Ritesh Agarwal, in a mail to the employees, said the restructuring exercise is aimed at reducing redundancy while driving tech-based synergy and enhanced efficiency.

Hospitality firm OYO is planning to let go over 1,000 people in India as part of its restructuring and reorganisation of teams across businesses and functions to trim redundancy.

In an internal mail to the employees of OYO in India and South Asia, the company’s founder and Group CEO Ritesh Agarwal said asking some of his colleagues to move to a new career outside of OYO has not been an ‘easy decision’.

Though the mail did not provide the numbers of people that are being laid off, sources familiar with the matter put the number at over 1,000 and said the reason was ‘right-sizing’. One of the implications of the new strategic objectives for 2020 is that, like the leadership team, OYO will reorganise more teams across businesses and functions, Mr. Agarwal said.

The objectives of the company are — sustainable growth, operational and customer excellence, profitability and training and governance, he added. And this means that, unfortunately, some roles at OYO will become redundant as the company further drives tech-enabled synergy, enhanced efficiency and removes duplication of effort across businesses or geographies, he said.

OYO is doing everything it can to ensure that the outgoing colleagues receive as much assistance and support as possible through this transition, Mr. Agarwal said. “Every OYOpreneur is important to OYO and ensuring their well-being both during and after their tenure is our number one priority. I want to thank them for their efforts and apologize for the impact this is causing,” he added.

Over the past few months, OYO has “also successfully transitioned many of our colleagues into more meaningful roles by providing mentorship, training and tools to be successful,” he said. As an organisation, OYO stands strong with its people, not just with those who are impacted, but also with those who will remain an integral part of OYO beyond today, Mr. Agarwal said.

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Printable version | Jan 28, 2020 12:40:50 PM | https://www.thehindu.com/business/Industry/oyo-may-lay-off-more-than-1000-people-in-india/article30558508.ece

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