According to reports in foreign media, Indian hotel start-up OYO plans to cut about 5,000 employees around the world and China will be the most impacted market where about 3,000 people may lose their jobs.
It is said that OYO is currently cutting employees in China, US and its domestic Indian market, aiming to improve profitability. OYO has been expanding rapidly since 2013 and the company's valuation once reached USD10 billion.
Ritesh Agarwal, founder and CEO of OYO, said during an interview that in the previous stage, the company increased lots of assets to its business platform and established brand awareness. In 2020, their major goal is to achieve profit growth.
Agarwal revealed that OYO's global employee number was 30,000 in January 2020 and they planned to cut about 17%. In addition, OYO will place "hotel relationship improvement and company supervision enhancement" in the first position.
Agarwal also added that OYO was implementing global restructuring and its global employee number would be reduced to about 25,000 after the restructuring.
Due to the coronavirus epidemic, OYO plans to cut about 50% regular employees in China. Currently the company has about 6,000 regular employees in the country.