New Delhi, December 9: Amid the slump in business due to COVID-19, Oyo Hotels and Homes has laid off another 300 employees in its operations team over the past week.
According to a Livemint report, the company's ongoing shift from a minimum business guarantee model to a revenue-sharing one requires fewer people, and therefore Ola has fired employees. OYO Rooms Founder And CEO Ritesh Agarwal Booked For Alleged Fraud And Conspiracy; Company Refutes Charges, Says Allegations Are 'Baseless, Incorrect & Defamatory'.
Oyo will now be charging the hotel partners a share of the entire revenue they earn on their properties. It will cease to offer a minimum guarantee or even provide management staff at the hotel premises, something it used to do with the aim of maintaining consistency and to monitor quality. In the new revenue-sharing model, hotel owners will be responsible for operations, while the marketing will be done by Oyo.
Even though the layoff exercise was pan-India, most employees who lost jobs were in places where business remains affected due to coronavirus pandemic. In June, the company offered all its employees deeply discounted ESOPs comparable to Restricted Stock Units or RSUs.
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