In a corporate and technological division restructuring, Oyo, which is a SoftBank-backed India-based hotel chain, is looking to lay off 600 staff members.
In a statement, the company said, “OYO will downsize 10 percent of its 3,700-employee base, which includes fresh hiring of 250 members and letting go of 600 employees.” The company also added that the product and engineering teams merge for smoother functioning.
Regarding the 250 new hirings, the company will primarily be adding to 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.
“We will be doing all that we can to ensure that most of the people we are having to let go are gainfully employed,” said Chief Executive Officer Ritesh Agarwal. He added, “it is unfortunate that we are having to part ways with many of these talented individuals who have made valuable contributions to the company.”
In confirming the layoffs, the company said, “The downsizing in tech is also happening in teams which were developing pilots and proof of concepts such as in-app gaming, social content curation, and patron-facilitated content. Additionally, members of projects that have been successfully developed and deployed, such as ‘Partner SaaS,’ are being either let go or redeployed in core product & tech areas such as AI-driven pricing, ordering, and payments.”
As the integration of various functions of its European vacation homes business progresses, it is downsizing some parts of the business to increase efficiency and harness synergies. The company has reassessed its corporate headquarters base, merging congruent roles and flattening team structures where needed.
The company’s layoff did not come as a surprise as the company reported a net loss of $40.90 million in the second quarter of the financial year compared with a loss of $50.85 million in the first quarter. The company’s financial year runs from April 1 to March 31.
Additionally, the company has cut down operations in China and the US and is now focusing on India, Southeast Asia, and Europe.