OYO downsizing 10% of employees, cutting 600 jobs
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New Delhi: OYO, the IPO-bound travel tech company, announced on Saturday that it is going to downsize about 10 per cent of its 3,700 employees. It will cut 600 jobs in its technology and corporate verticals but hire 250 members to its relationship management teams, PTI reported.
A statement released by the firm said, "OYO will downsize 10 per cent of its 3,700-employee base, which includes fresh hiring of 250 members and letting go of 600 employees."
The firm said that the action is to make broad changes in its organizational structure. Downsizing will happen in its product & engineering, corporate headquarters, and OYO Vacation Homes teams. Product and engineering teams are being merged for smoother functioning, it added.
OYO further said that the downsizing is happening in the crew, which develops pilots and proof of concepts such as in-app gaming, social content curation and patron-facilitated content. Members of projects which have now been successfully developed and deployed, such as 'Partner SaaS', are being either let go or are being redeployed in core product & tech areas such as AI (artificial intelligence) driven pricing, ordering and payments, the firm said.
Along with integrating different functions of its European vacation homes business, downsizing is happening in some parts there also, aiming to increase in efficiency as well as to harness synergies. OYO reassessed its corporate headquarters base and is merging congruent roles and flattening team structures.
The company promised that it would aid laid-off employees to find other jobs and continue with their medical insurance cover up to three months on average.
Founder and Group CEO OYO, Ritesh Agarwal, said, "We will be doing all that we can to ensure that most of the people we are having to let go are gainfully employed. Every member of the OYO team and I myself will proactively endorse the strength of each of these employees."
"It is unfortunate that we are having to part ways with a lot of these talented individuals who have made valuable contributions to the company," he said and added, "As OYO grows and a need for some of these roles emerges in the future, we commit to reaching out to them first and offering them the opportunity."