Oyo Hotels lays off 300 of its employees, may be retrenched in future

In the past week, Oyo Hotels has laid off 300 employees. The official associated with this whole case said that Oyo has taken this step due to the deficit due to lack of demand. Significantly, Oyo is now changing its minimum trade guarantee model to a revenue sharing model that requires fewer people. 

he other person said that with this, 99 percent of Oyo's franchise business will now be based on revenue sharing, while some properties will still follow the Minimum Guarantee Assurance. With this, Oyo has automated many processes. With the advent of new technology, less staff is required.

Oyo mainly has two businesses. This includes the owners of hotels in the Oyo franchise business partner. While frontier business includes co-living and student housing. In this it takes over the property and operates under the Oyo brand. Oyo has fired staff from both businesses.

The process of laying off the employees went on throughout the country but in the areas which were most affected, the most people have lost their jobs. The other person said that Oyo could evacuate more people because the impact of the epidemic on the hospitality sector is not diminishing. 

Significantly, even before the lockdown, Oyo fired 5,000 employees, discharged some, while making huge cuts in salaries so that it could control its expenses. Oyo has been cutting its staff since late 2019. However, after the situation improved from August this year, Oyo has started improving the salaries.