Amidst expanding its business across the globe, OYO China is reportedly going for a mass lay off across business development and operations teams.
The development comes in concurrence with OYO’s China increasing its presence to more than 337 cities in the country with five lakh rooms and claiming to emerge as the largest single hotel brand.
OYO Jiudian has about 2,000-3,000 people in the development team and over 1,000 headcounts in the operations team. While the development team will face around 1,000 firings, the operations team is slated to dwindle by half, reports 36kr.
In a press statement to the publication, OYO said that its corporate management culture is performance-oriented and it will not tolerate continual failure to meet targets by employees.
The mass sacking also recalls the statement by Wilson Li, OYO China’s Chief Financial Officer that OYO had only reached 20–30% of its targets for project development, transformation, operations management, and distribution capabilities.
He also emphasized that the firm will be satisfied when this percentage will reach 60% or even 80%.
This is not the first time when OYO is giving pink slips to its employees. Just two months ago, it had fired 25 employees and issued warnings to over 100 more over unethical practices.
On the contrary, OYO is planning to recruit more talent, and has already hired over 10,000 people and created jobs for over two lakh people.
When you see OYO’s presence in more than 800 cities and more than 10 countries including the United States, China, Europe, Britain, India, Malaysia, Middle East, Indonesia, Philippines, and Japan, the number of layoffs still looks minimal. However, sacking over 1,000 people from a single country over failing to meet the target is indeed a tough call.