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Last Updated : Jun 25, 2020 11:22 PM IST | Source: Moneycontrol.com

COVID-19 impact | Oyo to lay off majority of furloughed US employees: Report

The furloughed employees were informed about this development by Chief Operating Officer Abhinav Sinha.

With the global travel industry battered by the coronavirus outbreak, Oyo is reportedly laying off most of its furloughed US employees as it looks to shore up operations in a market beset with low occupancy levels and dwindling revenues.

According to a report in Skift, the company, which has a presence in over 800 cities across the world, has been forced to take this step because it does not see a recovery in its global operations until the second half of 2021.

Oyo, however, will give them stock options but there are doubts about its long-term value.

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The furloughed employees were informed about this development by Chief Operating Officer Abhinav Sinha.

In the mail addressed to the employees, Sinha said that in addition to the stock options, Oyo will also provide them with a job-placement service and extended health care and other separation support.

In April, Oyo had laid off hundreds of employees across divisions like sales, business development and HR.

In a recent interview, Oyo's founder Ritesh Agarwal had claimed the company has enough capital and does not plan to exit any markets.

Oyo's India operations, reeling under the debilitating impact of the Covid-19 outbreak, is also stuttering and the Agarwal had said that around 5,000 employees will be handed pink slips.

The operating costs of hotels are set to rise with new guidelines in place and the sector faces an uphill task in its battle to recover from this massive setback.

Follow our coverage of the coronavirus crisis here
First Published on Jun 25, 2020 10:27 pm
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