With revenues declining by 50-60% amid COVID-19 outbreak, OYO Rooms will be placing a “significant” number of employees across the world on temporary leave or furloughs of a minimum of 60-90 days, the company’s Founder and Group CEO Ritesh Agarwal said in a video message to all employees and other stakeholders.
In a statement, the company, however, clarified that employees in the U.S. and other countries will be placed on furloughs and temporary leaves, and no measures will be taken in India till the lockdown. “The company assured that it is not considering job cuts at any location at this time, despite significant economic pressures,” the statement added.
“The economic impact brought by coronavirus is dramatic and has impacted every industry... I cannot imagine any other industry that is worse affected [than] travel, tourism and hospitality,” Mr Agarwal said, adding that the revenues of OYO and the occupancies have dropped by over 50 to 60% due to the company's balance sheet has come under severe stress.
He, however, added that the impacted employees will continue to receive all the healthcare and medicare benefits.
Pointing that the situation of COVID 19 comes at a very “unique” time for OYO, right after the company had a “sizeable restructuring” in January, Mr Agarwal said “we intend to do no or negligible layoffs as part of cost restructuring across the world.”
Mr. Agarwal had recently announced that he will forego 100% of his compensation for 2020, starting April, while the company’s entire executive leadership will be taking a voluntary pay cut of 25-50%.
