SoftBank-backed Oyo firing thousands across China and India
NEW DELHI/BEIJING: Oyo Hotels is firing thousands of staff across China and India, people familiar with the matter said, adding to growing signs of trouble at one of the largest startups in SoftBank Group Corp's portfolio.
The company has let go of 5% of its 12,000 employees in China partly due to non-performance, while dismissing 12% of its 10,000 staff in India, one of the people said. It plans to shed another 1,200 in India over the next three to four months, the person added. Oyo is undergoing a restructuring, trimming redundancy in China and India, leading to thousands of dismissals, according to the people, who requested not to be named because they aren't authorized to talk to media.
"We continue to be one of the best places to work for and one of the key reasons for this has been our ability to consistently evaluate, reward and recognize the performance of individuals in a meritocratic manner, and enable them to improve their performance," Oyo said in a statement.
Oyo's downsizing is another setback for Masayoshi Son's SoftBank, whose portfolio has been buffeted by recent trouble at WeWork and slumping share prices at Slack Technologies Inc and Uber Technologies Inc. The billionaire has called for greater financial discipline among the founders in his portfolio, spurring job cuts at smaller outfits such as Zume Pizza Inc. Other SoftBank investees, including Getaround, Wag Labs Inc, Fair and Brandless Inc, have had to cut staff or changed business models once it became apparent revenue and profits were not living up to their once-grand ambitions.
OYO裁员是孙正义的软银遭遇的又一次挫折。最近WeWork遭遇的麻烦，以及Slack Technologies和Uber Technologies股价的暴跌，都打击了软银的投资组合。这位亿万富翁呼吁其投资组合中的创始人加强财务纪律，促使Zume Pizza Inc.等规模较小的公司进行裁员。软银的其他投资对象，包括Getaround、Wag Labs、Fair和Brandless等，一旦营收和利润明显达不到当初的目标，就不得不裁员或改变业务模式。
Adding to Oyo's challenges, hotel owners in China have been protesting in front of the company's offices, accusing the startup of violating contractual agreements.
Oyo will "enhance communications with hotel owners and develop owner loyalty" this year, the company said in the statement. "We will launch the VIP owner program, and contact owners regularly, to ensure that the interests and needs of theirs and ours are equally taken into account."
Son has been a keen supporter of Oyo founder Ritesh Agarwal, helping fund the hotel company's fast international expansion. Oyo had been growing at a rapid clip, but its reputation has suffered due to customer complaints about bad experiences along with grievances about poor or unfair treatment from several of the more than 20,000 hotel owners in its chain.
very, very bad experience with OYO. never ever go near a OYO hotels
Brijbhushan Varma• 6 hours ago
I think just 10-15% firing is creating a furrore there is sometimes attiriation higher than that and everyone knows that there incompetent people who need to be tackled there is no free lunch in pvt sector unless you are competent or smart
Edoras • 7 hours ago
Many unemployed bhakts are going to boycott Chhapaak due to lack of money.
Jitesh• 5 hours ago
and slaves would be selling their kidneys to support another anti national
SUBRATA • 5 hours ago
Big number of customers have genuine complaints.
Suresh • goa • 5 hours ago
actually oyo hotel is more frequented by cheap tourists n brothels type system.
Anon • 7 hours ago
Hire and Fire easy
Ashok Chavda• 5 hours ago
Oyo is fraud. They loot hotel owners demand commission on revenue.
Indra Prabha • 6 hours ago
They know wht is best for them;they hire and fire according to the qualifications and work of the individuals.
Shapoor Bomanjee • 5 hours ago
Ban these OYO. SOYO and MOYO from operating in India.
God • 6 hours ago
Oyo is trash anyway.1
Vijay • 14 mins ago
really bag experience with oyo
aaks • 5 hours ago
Angraj Mishra• 5 hours ago
Oyo got no controls on hotels...t
Hindustani • 5 hours ago
Hope the situation will improve in coming months. GST & IIP no's Indicates economy is on the path of recovery at least in India
Sameer Gilani • 6 hours ago
So what FM has made sure that our economy still keeps on growing @15% pa.
Nikhil Manjrekar • 6 hours ago
Why is it even a news worth notice. If it says firing is taking place because of ‘non-performance’