Continuing its fight against COVID-19, OYO announced the onset of furloughing and temporary leaves in the US & select other markets while assuring that India remains unaffected till the lockdown period.
In a video message and letter to employees and all other stakeholders, Ritesh Agarwal, Founder & Group CEO, shared that the company will be placing a certain number of OYOpreneurs on furloughs or temporary leaves. He also confirmed that keeping its promise to the government of India, OYO is committed to zero actions that impact employment status and salaries of ten thousand plus OYOpreneurs on payrolls and tens of thousands of OYO managed assets staff, during this unprecedented period of a 21-day countrywide lockdown.
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 company assured that it is not considering job cuts at any location at this time, despite the significant economic pressures.
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 the company the opportunity to do what is right for the business while ensuring that employees are safeguarded against a potential job-cut. The company’s goal is to make sure that the business sustains and leads to the recovery of the industry.
The company is also hopeful that as the situation begins to improve globally, they will be able to bring as many of its employees as possible, back to full-time work at OYO.
While highlighting small yet encouraging green shoots of recovery in some markets like China, Denmark and Japan the company acknowledged that these are tough times, and the company’s revenues have dropped by 50%-60% while industry revenue for various hotel chain peers has dropped more than 75% globally.