OYO now plans to layoff 2,000 employees, the company says it may ‘replace some candidates’

• OYO is now planning to layoff 2,000 people by January end, according to reports.
• It has been struggling with a growing crisis at home, with rising dissent from hotel owners over contract issues as well as non payment of dues.
• Recently, Yahoo ended its partnership with the hotel chain in Japan.

The troubles of OYO are far from over. According to an ET report, it is planning to layoff 2,000 people by the end of January. OYO is also known to be cutting down on manpower costs and by automating processes.

Yet, OYO continues to maintain that it is one of the “best places to work”.

"OYO continuously tracks performances of individuals and depending on the results and the individual’s interests, we may replace some candidates after giving them the opportunity to go through a performance improvement programme,” said an OYO spokesperson.

Layoffs is not the biggest problem that the unicorn is now facing. A crisis is brewing at home as hotel owners complain that they are not being paid. Some others are unhappy with the contracts they are offered as well.

Recently, a Bengaluru hotelier filed a cheating case against Ritesh Agarwal, founder of OYO, and six others over dues. In the complaint, the hotelier claimed that OYO was supposed to pay him ₹7 lakh a month for room bookings, but failed to do so since May 2019.

The startup is also in trouble with the authorities. A commercial agreement between MakeMyTrip and Oyo is being investigated by the Competition Commission of India for the possible dominant position that they could enjoy.

OYO’s problems are as far and wide as its hotel chain. Its latest sweet spot – the US market is also presenting similar troubles. US media outlet Skift reported that several hotel owners complained that OYO’s partner management system didn’t work properly. They also complain of non payment of dues.

The latest salvo came from Japan where Yahoo ended its partnership due to rising complaints from hotel owners. In China, where it boasts of being one of the largest hotel chains too - hotel owners say that they are being paid less than what they were promised.

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