If the previous reports are to be believed, then most of the layoffs will happen from the sales, supply and operations divisions. However, the company has not yet confirmed which departments will be hit.
This isn’t the only trouble for Oyo as hotel owners in China have been protesting in front of the company’s offices, accusing the startup of violating contractual agreements. Commenting on this, the company said in a statement that it will “enhance communications with hotel owners and develop owner loyalty.”
It also added that the company 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.”
Although the company has been growing rapidly, its losses have been growing every year, multiplying six fold in 2019 and ballooning up to Rs 2,384 crores. In November, around 500 hotels in 100 cities have cut off ties with the company since April. However, Oyo declined the report and said that the numbers were ‘inflated’.
Such aggressive growth and rapid expansion for the company has been possible thanks to the massive funding from the SoftBank Vision Fund, which has so far invested about $1.5 billion in Oyo, pushing its valuation to $10 billion. The company also counts Airbnb, Sequoia Capital and Lightspeed Venture Partners, among others as backers.
