The multinational hospitality chain company will also incorporate product development and technical teams to expedite the company’s efficiency.
Heaptalk, Jakarta — An India-based giant hotel aggregator company backed by Softbank, OYO Hotels and Homes Pvt Ltd has declared a layoff determination for 600 employees on Saturday (12/03). According to the company management team, millions of the significantly impacted groups came from the digital department.
OYO has cut to around 10% of 3,700 permanent employees in total. Meanwhile, the management representative also affirmed the company had only hired a new workforce of about 250 people. On the other hand, the business efficiency strategy of this company also applies to the In-App Games concept developer team and the social content curation officer department. To expedite the company’s efficiency, this multinational hospitality chain company will also incorporate product development and technical teams.
As cited by Reuters on Monday (12/05), the Chief Executive Officer of OYO, Ritesh Agarwal, conveyed, “We will do everything we can to ensure that our impacted employees can obtain beneficial job opportunities,”
The company was forced to perform a layoff determination as OYO Hotels recorded a net loss of US$40.8 million, or approximately INR3.3 billion, in the third quarter. Previously, as reported by the company’s financial department, the company funded by Softbank noted a loss worth US$50.6 million, or equal to INR4.14 billion, in the initial quarter of 2022.
Currently, OYO Hotels is working on being able to make an initial public offering on the Indian stock exchange. For information, the company submitted its Initial Public Offering (IPO) plan in October 2021. However, realizing the turbulent conditions around the market, the company was constrained to put on ice this strategic effort.
Perceiving a significant loss to the company’s performance, OYO Hotels decided to reduce some of the company’s expenses, including marketing and administrative costs, in the final quarter. After reducing operations costs in the market, the company will prioritize the business operations in several markets: India, Malaysia, Europe, and Indonesia, removing the United States and China as the essential markets.
According to the Global Chief Business Officer and CEO of OYO for Southeast Asia and the Middle East (SEAME), Ankit Tandon, the company determined to retain Indonesia as the primary market due to the archipelago being one of the most evolved markets in terms of scale and economy side. For this reason, Tandon has a vigorous confidence that Indonesia has a peculiar potential and proportion for the business sustainability of OYO Hotels.
