- After a round of layoffs from India & China, this time OYO fires its staff from the US market.
- An email was shared with OYO employees by COO – Abhinav Sinha.
- California lost more than 50 BDM (business development managers)
- Florida witnessed more than 20 job cuts in the same category.
After a round of news coming straight from OYO’s office, this one shouldn’t be a surprise. OYO goes for another round of layoffs in its company. This time it’s the US that is affected.
American travel research media Skift reported that OYO laid off around 360 US employees in a bid to take a more balanced approach to growth.
If we talk about in which job roles that were affected then we have business development managers, talent acquisition leads and area general managers.is mass firing is covered up by saying that the company is restructuring its business and organization structure. But who is bearing the cost? It’s their faithful employees who never thought of getting fired.
“We will be primarily be redirecting resources from sales and support functions to functions that build our operational capabilities like revenue management, data science & machine learning. engineering, and other areas,” – Abhinav Sinha.
The new corporate restructuring ensures profitability through “measured growth” and technology investment, realigning network and centralizing some processes to create a highly efficient team.
While OYO grew quickly during its initial years by the time it was close to maturity, OYO did a round of layoffs worldwide.
From India, China and now the US, the company is definitely on a layoff spree!
US market adding to OYO layoffs, the company doesn’t seem to stop when it comes to cutting jobs so that they can save their cost.
OYO Layoffs – The List (till now):
- 5% of its 12,000 employees in China due to “non-performance”.
- 12% of its 10,000 employees in India for the same reason.
The company gave one simple reason for OYO layoffs which is “corporate restructuring”. But the truth behind mass layoffs is something else.
The truth behind OYO layoffs globally is that their major investor SoftBank has asked its entire portfolio either to get profitable or do something about it to be one by the earliest.
Which resulted in mass hiring across major domains.
Was it necessary for mass layoffs? Was There No Other Way Out?
Thinking from OYO’s point of view, sooner or later this was to happen. With the speed of their initial recruitment, the start-up didn’t think much because it was deep-pocketed (at that time).
But slowly the company’s cost kept increasing with its expansion and diversification plan and they didn’t reap profits (as planned). OYO’s core business is with hotels and if they start churning properties (like OYO layoffs) its business will be highly affected.
Thus, the company started firing its employees. Whatever the reason may be, from a business point of view, OYO layoffs are directly proportional to the company’s cost-cutting.
Had the company paid more attention to talent acquisition during its initial days, OYO would have not been stuck with the problem of a “non-performing” workforce.
“Unfortunately, as we move towards more sustainable growth, and towards a new profitability focused plan, some roles will become redundant,” he said. “We will be primarily redirecting resources from sales and sales support functions to functions that build our operational capabilities like revenue management, data science and machine learning, engineering, and other areas.” – added by Abhinav Sinha.
Just like we listen to our parents, start-ups need to listen to their major investors. With SoftBank clearly indicating to either be profitable or find ways to be one, we have seen OYO layoffs from time to time.
With much more to come from OYO’s side, after this mass firing its existing employees have all the reasons to feel insecure about their job.
Every sector, market, and niche is highly competitive. But competitive doesn’t mean that one would harm its own company to move ahead.
There was a time when OYO did mass recruitment. There is another time when there is a mass OYO layoff. Maybe this mass recruitment was done just to survive during these problematic days.
While there is no one reason to support OYO layoffs (there are many) but all the reasons lead us to one common conclusion:
Any start-up that grows with Godspeed has its downers as well. An ethical start-up will never save the business by giving up its employees while a start-up stuck with unethical practices will give all the reasons to support their practices.
We have our sympathies with OYO’s employees, ex-employees and with its upcoming workforce.
Do you think there are layoffs only in OYO? Well, no!