Coronavirus: OYO says no job cuts in India, some international employees to get furloughs, temporary leaves
OYO Founder Ritesh Agarwal said that the startup is committed to no job cuts in India, but few international employees will get furloughs and temporary leaves amid the coronavirus pandemic.
Ritesh Agarwal, the Founder and Group CEO of the Gurugram-based hospitality chain OYO, in a video message and letter to employees and stakeholders said that OYO is committed to no actions that will impact the Indian employment status and salaries of more than 10,000 OYOpreneurs on payrolls, and tens of thousands of OYO managed assets staff, during this unprecedented period of a 21-day countrywide lockdown.
However, a certain number of employees will be placed on furloughs or temporary leaves. The unicorn added that as global occupancies continue to reduce in the hospitality industry, furlough (in markets like the US) or temporary leaves in select other markets will give OYO the opportunity to do what is right for the business while ensuring employees are safeguarded against a potential job-cut.
Coronavirus: OYO's Ritesh Agarwal to forego 100% annual salary, leadership team to take voluntary pay cuts
In a press statement Ritesh stated - "While taking these necessary and tough decisions in the interest of the health of the business and its long-term sustainability across markets world over, the startup assured that it is not considering job-cuts at any location at this time, despite the significant economic pressures."
He explained that the startup's goal is to make sure that the business sustains and leads to the recovery of the industry. Basis careful consideration of all possible options, the decision of instituting furlough or temporary leaves for a certain number of OYOpreneurs, is the best way to ensure jobs are safe while keeping costs in check. The option will enable OYO to continue supporting healthcare coverage and other associated benefits, which is important during such tough times, Ritesh further said in his letter.
While highlighting small, yet encouraging green shoots of recovery in some markets like China, Denmark, and Japan, OYO acknowledged that these are tough times, and its revenue has dropped by 50-60 percent, while the industry revenue for various hotel chain peers has dropped more than 75 percent globally.
Adhering to the guidelines laid down by the Indian government, the startup will continue its two-pronged efforts to minimise the possibility of infection and maximise social distancing and hygiene.
Further, Founder Ritesh Agarwal said that he will forego 100 percent of his salary, and its executive leadership team will take voluntary pay cuts as the hospitality industry reels under the coronavirus pandemic.
OYO has also partnered with Apollo Hospitals' Project Stay I (Stay isolated) to develop and support accommodation requirements of suspected COVID-19 patients requiring quarantine or self-isolation. Moreover, it recently announced two initiatives namely, ‘Donate A Night’ and ‘Book A Night for self-isolation’, to support the Indian government's efforts to break the chain.
(Edited by Suman Singh)
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