COVID-19 has impacted the global hospitality industry significantly with occupancies of various hotel chains being affected drastically. Many Indian startups in the segment are slashing salaries across levels to conserve cash and extend their runway. Indian hospitality unicorn OYO Hotels & Homes is no different than these startups affected by the pandemic.
The Ritesh Agarwal-led company recently announced that the company founder & Group CEO, has decided to forego 100% of his salary for the rest of the year.
In addition, the company’s entire executive leadership team has taken a voluntary pay cut starting at 25%, with many opting for an additional uncapped amount, and some going up to 50% to enable building the runway for the company. This would be effective from April 2020.
In an official press release, the company said, “It has been a matter of pride for OYO Hotels & Homes that it has retained each and every single leader in the CXO group in the history of the company, and in a difficult time like this, the executive leadership has come together as one strong entity as true partners of the company.”
Commenting on the development, Ritesh Agarwal, Founder & Group CEO said, “The current situation the world over is deeply concerning to each and every one of us. OYO is doing everything to support the world with its limited resources in this pandemic from making isolation centers to finding a safe place for first responders. Given the current business situation, which is unprecedented for our industry globally, I am foregoing 100% of my salary for the rest of the year. I am grateful to my leadership team that has also taken pay cuts and support the company during these tough times. We at OYO stand committed towards the fight against COVID-19 and will try to do everything in our control to reach out and help people while also ensuring long term success of the company, and our ability to continue delivering on our mission to bring better living spaces for all, at the right prices, globally. ”
In line with the Government’s direction, OYO has taken a series of measures to accommodate frontline medical staff in the US. The company has offered rooms across 300+ hotels for free to all medical professionals, including doctors, nurses, and first-responders.
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