Oyo’s founder has circulated an internal note to all India employees confirming rumours that the budget hotel chain is laying off staff, and outlining new priorities for the embattled company for 2020 and beyond.
It is rumoured more than 1,000 employees out of a workforce of around 10,000 in India and 600 of 12,000 in China will be let go, although very few in other markets.
Oyo is finding issues organising low budget accommodations in markets with different cultures and dynamics into a consistent hotel brand.
In the financial year ending March 2019, the company saw losses of around Rs 2,400 crores ($340 million) but is eyeing a public listing in the next couple of years.
According to a recent report, Oyo has cut at least 65,000 rooms in India from a portfolio of around 270,000 rooms in 500 cities in the country.