Budget hospitality chain Oyo has announced that a certain number of its employees in India will be opting for voluntary leave with limited benefits that will be applicable from May 4.
The development comes two weeks after the company announced furloughs and temporary leaves globally and confirmed no job cuts in India until the lockdown.
According to Rohit Kapoor, Oyo India CEO, the company has assured its staff that it is not considering job cuts in India at this time despite significant economic pressures.
The company also reiterated that the goal is to minimize job cuts due to the spread of COVID-19 as much as possible despite a deep impact on the company’s business. According to a statement, the company has decided to cut 20% salary for all employees for a period of April-July this year
Earlier this month, in a video message and letter to employees and all other stakeholders, the company’s Founder & Group CEO Ritesh Agarwal shared that the company will be placing a certain number of OYOpreneurs on furloughs or temporary leaves globally.
He has also said that the company intend to do no or negligible layoffs as a part of cost restructuring across the world.
“OYO is taking all necessary actions, like reduce controllable costs, voluntary salary cuts accepted by leaders, and more to mitigate COVID-19’s impact and ensure long-term success and sustenance of the business.
The Gurugram-based firm has also placed some OYOpreneurs on leave with limited benefits from May 4 for four months until August.
They will be supported with the continuation of medical insurance and parental insurance, school fee reimbursement and ex-gratia support, said the company in a press statement.
The decision of a pay cut and furlough have come at a time when hospitality and travel startups across the country have been hit badly by the COVID-19 pandemic.
Many companies such as MakeMyTrip, TravelTriangle, Fab Hotels and Treebo have fired staff and cut salaries across all levels.