Posted by Singh Rahul Sunilkumar
The upcoming IPO travel technology company OYO announced on Saturday that it would cut about 10% of its 3,700-person employee base by cutting 600 jobs in tech and corporate verticals and hiring 250 people, primarily in its relationship management team.
OYO said the move was part of implementing broader changes in its organizational structure. We are reducing our Product & Engineering, Headquarters, and OYO Vacation Homes teams and adding staff to our Partner Relationship Management and Business Development teams.
“OYO will cut 10% of its 3,700 staff, including hiring 250 new employees and laying off 600 staff.”
It added that product and engineering teams are merging for more seamless functionality.
Technology downsizing is also happening with teams developing pilots and proofs of concept, such as in-app games, social content curation, and backer-facing content, the company said. Additionally, members of currently successfully developed and deployed projects, such as ‘Partner SaaS’, informed that they are being deployed or redeployed in core product and technology areas such as artificial intelligence (AI)-based pricing, ordering and payments. .
The company will add 250 members, primarily to its relationship management team to ensure better consumer and partner satisfaction, and to its business development team, which will help expand the number of hotels and homes on its platform.
As the consolidation of the various functions of the European villa business proceeds, it is scaling back some parts of the business to increase efficiency and capitalize on synergies, OYO said.
The company also added that it has re-evaluated its headquarters base, merging matching roles where necessary and flattening the team structure.
The company said it would help as many employees as possible in re-employment and continue health insurance coverage for an average of up to three months.
OYO Founder and Group CEO Ritesh Agarwal said “We will be doing all that we can to ensure that most of the people we are having to let go, are gainfully employed. Every member of the OYO team and I myself will proactively endorse the strength of each of these employees.
“It is regrettable to part with so many talented individuals who have made valuable contributions to the company.”
Agarwal added, “As OYO grows and the need for some of these roles emerges in the future, we commit to reaching out to them first and giving them opportunities.”