OYO has officially announced that while the Company will go ahead with furloughs and temporary leaves in the US and some other markets, no such steps will be taken for India-based employees.
In a video message and letter to employees and all other stakeholders, Ritesh Agarwal, founder and CEO, has shared that the Company will place a certain number of ‘OYOpreneurs’ on furloughs or temporary leaves in the US market. However, in India, employment status and salaries of 10,000 plus OYOpreneurs on payrolls and 10,000 plus OYO-managed assets staff, will remain unaffected during the 21-day lockdown period. Agarwal says, “We are committed to our promise made to the Government of India and zero actions will be taken.”
The Company has assured that it is not considering any job cuts at any location within India at this point of time, despite the significant economic pressures.
It claims that its goal is to make sure that the business sustains and leads to the recovery of the industry. Hence, considering all possible options, this decision of instituting furloughs or temporary leaves for a certain number of OYOpreneurs is the best way to save jobs while keeping costs in check.
This move will enable OYO to continue offering healthcare coverage and associated benefits, mainly to its US employees, which is critical in the present circumstances.
OYO hopes that the situation will begin to improve globally, and they will be able to bring as many of its employees as possible, back to full-time work.
With the travel, hospitality and tourism sectors among the worst affected by COVID-19, the startup recently announced that Ritesh Agarwal, founder & group CEO, OYO Hotels & Homes, will forego 100 per cent of his compensation for 2020. OYOs entire executive leadership (CXOs) team will take a voluntary pay cut, starting at 25 per cent, with many opting for an additional uncapped amount, and some going up to 50 per cent to enable building the necessary runway for the Company. OYO has also facilitated accommodation support to international tourists and engaged with multiple foreign embassies and diplomatic missions in India.