Softbank-backed OYO has recently decided to lay off about 100 employees or 20% of its United Kingdom workforce. The recent development comes amid the ongoing restructuring of business at OYO.
According to a report by Yahoo Finance UK, OYO was involved in a 30-day consultation with UK staff and concluded the process recently. As a result, around 50 to 100 staffers have been let go, which is said to be approx 20% of the company’s UK workforce.
There might be announcements of even more exits in the coming weeks either due to the layoffs or due to failing “performance improvement plans” due to “unrealistic targets”, the report added.
OYO maintained that everyone affected by the recent layoffs has been notified. An OYO spokesperson reportedly said that the group “is doing everything we can” to help and support staff “going well beyond our legal obligations.” OYO is offering two-months severance and is also offering to counsel employees and support them in applying for new jobs, following a similar process to what has been done in India and other markets.
The report also mentioned a video by company Founder and CEO Ritesh Agarwal to the staff about the layoffs in the UK. In the video, Ritesh said, “I know recently there have been some tough moments for the team. This has been the case not just in the United Kingdom but across the world. These tough moments, when we have to say goodbye to other OYOpreneurs, are very emotional moments.”
The development can also be seen in the light of the exit of OYO’s UK Head Jeremy Sanders. He had joined OYO in August 2018 to launch the business in the UK, however, Sanders left the company in January 2020. OYO has maintained that “There’s no story behind his departure.”
An OYO spokesperson said Sanders left to spend more time with his family.
Within the first month of 2020, OYO has seen a major restructuring leading to several layoffs across its home and international markets. While in India, the company has laid off around 3000 employees, 5% of its staff in China, and over one-third of its employees in the US.
Agarwal had issued a public statement saying that he believes OYO is going through its most important phase as it looks to supplement its strong business plans with an uncompromising commitment to building an employee-first culture, with significant investment in continually improving its governance framework.
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