With more than 50 per cent dip in revenues; OYO opts to put US staff on furlough
The employees will be sent on furloughs or temporary leaves for a minimum period of 60 to 90 days
In a video message and letter to employees and all other stakeholders, OYO Founder & Group CEO Ritesh Agarwal, announced that few of its employees in US and other select markets will be send on furloughs or temporary leaves.
The announcement comes in the wake of slump in the hospitality industry due to the coronavirus pandemic. In terms of Indian employees, the company said that no action will be taken until the lockdown span. The company informed that the employees will be sent on furloughs or temporary leaves for a minimum period of 60 to 90 days.
Agarwal also said that keeping its promise to the Indian government, OYO is committed to zero actions that impact employment status and salaries of ten thousand plus employees on payrolls and tens of thousands of OYO managed assets staff during this period of a 21-day countrywide lockdown.
Addressing to Indian employees he said, "I would also like to reiterate that given the Government advisories in India, we remain committed to ensuring that all employees in India get salary and benefits during the ongoing lockdown scheduled until April 14, 2020."
The company also clarified that it is not considering any layoffs at this point of time anywhere despite the significant economic pressures. He further stated that OYO can keep job cuts at bay through a combination of lowered work weeks, pay cuts, temporary leave of absence until business recovers and other such measures.
Talking about the revenue impact of the crisis, Agarwal informed that they have registered about 50-60 per cent drop in revenue for now, which has worsened from the 10-15 per cent.