With the aim of reducing costs further, Softbank-backed hospitality firm Oyo has again laid off around 600-800 employees, according to sources privy to the development. Most of the staffers are from the renovation and operations departments. The company plans to shut down these divisions and focus primarily on a revenue-sharing model with partner hotels.
Oyo will now be charging the hotel partners a share of the entire revenue they earn on their properties. It will cease to offer a minimum guarantee or even provide management staff at the hotel premises, something it used to do with the aim of maintaining consistency and to monitor quality.
Oyo issued a denial on the number of people being laid off claiming it was highly overstated. “We have done no significant restructuring at this point in time. There are some localised actions basis change in business models and our move towards product and technology to serve our partners and customers keeping in mind the current business realities. We have no further comments to offer,” a spokesperson told Moneycontrol.