OYO has become the latest Indian startup to lay off employees in 2022. SoftBank-backed OYO will be laying off 600 employees, mostly involved in tech roles in product and engineering teams.
OYO said, “Product and engineering teams are being merged for smoother functioning. The downsizing in tech is also happening in teams which were developing pilots and proof of concepts such as in-app gaming, social content curation and patron facilitated content. Additionally, 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-driven pricing, ordering and payments.”
Besides, OYO will also be adding 250 employees, primarily in its relationship management team, in the next month or so to improve consumer and partner satisfaction. Some of these employees will also be added to the business development team to scale up the number of hotels and homes on the platform.
Talking about the reorganisation, Ritesh Agarwal, founder and Group CEO of OYO, 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. 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.”
This is the second layoff exercise undertaken by OYO in the last two years. In December 2020, the startup laid off 300 employees. The earlier layoffs were part of the company’s strategy to build a business sustainable in the long-run.