Oyo plans to lay off sales staff
About 60 salespeople in Oyo’s New Delhi and Gurgaon offices were the first to be fired and got their letters on Monday.
About 60 salespeople in Oyo’s New Delhi and Gurgaon offices were the first to be fired and got their letters on Monday. A similar number is in the process of being let go in other locations including Mumbai and Pune. Those being asked to leave range from executives to managers.
“Other employees in sales are getting their letters and some will get them soon. No reasons have been given to employees in these letters. They are being given a one-month notice period,” said a person familiar with the developments.
SoftBank-backed Oyo did not confirm or deny the developments. In response to ET’s queries, the company said it follows a performance-oriented grading system and separates a small group of employees – about 0.5% – every month across functions and markets for not meeting expectations and targets.
“OYO India is on a strong growth trajectory and we, as an organisation, are witnessing 4.5X year-on-year growth. We are able to achieve this feat by an ever-growing and passionate team of 9,000+ OYOpreneurs in India, including our 2,500+ strong sales team,” an Oyo spokesperson said.
The spokesperson said Oyo India plans to recruit more than 3,000 people this year.
In June, a Chinese media outlet reported that Oyo had plans to lay off 1,000 employees from the development team of its Chinese subsidiary Oyo Jiudian, but a company spokesperson had refuted the claims.
The move to let go of some sales staff in India could be linked to business and operations getting affected because of disputes between Oyo and some hotel partners, said sources.
Industry associations and hotel partners in India have alleged that the aggregator charges commissions arbitrarily, changes contracts and levies charges on an ad hoc, hidden basis.