- Oyo India CEO Rohit Kapoor said there won’t be job cuts
- Oyo, present in 80 countries, is especially vulnerable to the crisis because of its loss-making business model.
Kapoor confirmed the developments in an email to Mint, but declined to say how many employees have been put on furlough. He reiterated the earlier commitment made by Oyo founder Ritesh Agarwal to avoid cutting jobs.
“Oyo is taking all necessary actions, like reducing controllable costs, voluntary salary cuts accepted by leaders and more, to mitigate covid-19’s impact and ensuring long-term success and sustenance of the business while ensuring there are no job cuts in India, despite the economic pressures,” Kapoor said.
However, while the company’s steps have delayed “any potential impact” on Oyo employees, the steps “may not be enough as the extent and projected length of the crisis is highly unpredictable”, Kapoor warned.
Oyo’s moves to cut costs are in line with measures taken by hospitality companies across the world whose businesses have been ravaged by the covid-19 pandemic