Oyo has reportedly laid off around 300 employees mainly due to renovation and operations departments.
This has been done in order to build a long-term sustainable business as the company has introduced some operational changes aligned with the current business realities, the sources said.
This is in line with the company's efforts to drive technology-enabled synergies and realign some business functions to other verticals, leading to some redundancies across a few functions, they added. It is said that the layoff is not a restructuring action but is done due to some localized actions' basis change in business models.
According to the sources, apart from the usual benefits such as notice pay, leave encashment, earned incentives, and gratuity, the employees have also been given an option to surrender and offer cancellation of 25 percent of the invested deeply discounted ESOPs granted in June 2020. This is in lieu of cash benefit equal to 25 percent of their March 2020 drawn fixed salary, they added.
In April, the hospitality firm, which had around 10,000 employees at that time, had asked some of its staff in India to go on leave with limited benefits from May 4 for four months. It had also asked all employees in the country to accept a cut in their fixed salaries by 25 percent due to the impact of the COVID-19 on the hospitality industry.