OYO Promises India Workers to Remain Unscathed During Lockdown, Begins Furloughs or Temporary Leaves in Some Foreign Markets
As the global hospitality crisis deepens, a large number of workers in the US and other countries need to be put on furloughs or temporary vacations.
Keeping his pledge to the government and the people of India, there was no movement in India until the lockdown.
The organization has ensured that, despite substantial economic strains, it is not considering job cuts at any location at this time.
COVID-19 is shaking the entire hospitality industry worldwide, impacting occupancy and near to long-term sustainability. In these unpredictable and challenging times, continuing its battle against COVID-19, OYO, one of the world’s leading hotel chains, today announced the introduction of furloughing and temporary vacations in the US & select other markets while ensuring that India remains untouched to the point of lockdown period.
In a video message and a letter to employees and all other stakeholders, the company’s Founder & Group CEO, Ritesh Agarwal, said that a certain number of OYOpreneurs will be put on furloughs or temporary leave. He also reported that, in accordance with his commitment to the Government of India, OYO is committed to zero steps affecting the job status and salaries of ten thousand plus OYOpreneurs on payrolls and tens of thousands of OYO asset managers during this unprecedented 21-day country-wide lockdown.
While making these required and difficult decisions in the interests of business health and long-term sustainability across markets around the world, the organization has confirmed that it is not contemplating job cuts at any location at this time, given severe economic pressures.
While global occupancy continues to decline in the hospitality industry, furlough (in markets like the US) or temporary holidays in selected other markets would allow the company the ability to do what is best for the business while ensuring that workers are covered from future job cuts. The aim of the management is to ensure that the sector sustains and contributes to the recovery of the industry.
The organization is also hoping that, as the situation continues to change internationally, it will be able to get as many of its workers as possible back to full-time work at OYO.
Although highlighting small but encouraging green recovery spikes in some markets such as China, Denmark and Japan, the company has admitted that these are difficult times, and the company’s revenues have fallen by 50 percent-60 percent, although industry revenues for various hotel chain peers have fallen by more than 75 percent globally.
With the Travel, Hospitality & Tourism sectors among the worst affected by COVID-19, the start-up also recently announced that Ritesh Agarwal, Founder & Group CEO of OYO Hotels & Homes, will forfeit 100% of its 2020 compensation. While OYO’s entire executive management team (CXOs) is taking a voluntary pay cut starting at 25 per cent, with others opting for an additional uncapped number, and some going up to 50 per cent to enable the company to develop the requisite runway. OYO has also provided accommodation assistance for international visitors and has collaborated with a number of foreign embassies and diplomatic missions in India.