Reportedly according to a report hospitality major and unicorn startup OYO is in the process of downsizing its workforce by up to 2000 personnel and the process is on and might carry on till february 2020. Even though the company though not agreeing with the full report, claims it has its own way of assessing the performance of its employees through a rating system and the company makes efforts to relocate some personnel to other functions or to retrain them constantly. Furthermore some of the functional areas where the axe might fall heavily are sales, supply and operations.
Perhaps the objective appears to be to save on manpower costs, but as mentioned, there is no direct confirmation on this from official OYO sources. Further OYO Hotels & Homes has reportedly posted a huge loss last financial year, of ₹2,384.69 crore against a loss of ₹360.43 crore the previous fiscal. Hence therefore, if the company is trying to cut down on the expenses on manpower, it should not come as a surprise. Perhaps one source has said many of the people being asked to leave have been drawing annual packages of close to ₹10-₹12 lakh. Sending such large number of personnel home would mean saving of hundreds of crores for the company.
Moreover the only reaction to have emerged from OYO is that there is no indiscriminate firing of employees. The rating system determines the fate of the employee and the automation in certain functions is also cited as a reason for rendering some employees redundant in the system. Apparently the report indicates that some employees are claiming even those with higher ratings have been handed the pink slip. The notice period being served to those asked to leave is one month.
