App-based hotel aggregator, OYO Hotels & Homes will be firing around 5000 employees from their offices in different countries. China, OYO’s second home market, will be seeing vast layoffs since the company could not sustain in their market.
The Covid-19 outbreak has left China’s economy in shambles, consecutively affecting the world economy as well. With business being put on hold, the country is on a standstill with restrictions on regular activities as well. Funded by SoftBank, OYO hasn’t been able to keep its market alive in China since 2 months later, the country still grapples to find a solution.
As per reports, OYO will be firing an approximate fo 3000 employees in China alone, and temporarily laying off a few from its discretionary staff. There have been layoffs in OYO’s home base India as well. Mid-January revealed around 2000 layoffs across all designations in India would be expected in March.
Read: Oyo to layoff more than 2000 employees: Is India on a layoff spree?
The Gurugram based company has cited restructuring and cost-cutting as a reason behind these layoffs. Valued at $10 billion, the hospitality chain recorded a loss of $197 million from its Chinese operations which would account for 60% of the overall loss in the previous financial year.
In an interview with a global publication, OYO’s founder Ritesh Agarwal has accepted that partners of the hotel chain will experience tough times.
