Hospitality firm OYO Rooms has said that it will be firing 600 employees, majorly from tech roles in product and engineering teams, from a total of 3,700 employees, according to a company’s statement.
The layoffs were also in teams that were developing pilots and proof of concepts such as in-app gaming, social content curation and patron-facilitated content.
The company also said that it will be hiring 250 employees, primarily for its relationship management team, in the coming months to ensure better consumer and partner satisfaction and in business development teams to help scale up the number of hotels and homes on its platform.
“It is unfortunate that we are having to part ways with a lot of these talented individuals who have made valuable contributions to the company,” said Oyo CEO Ritesh Agarwal. “As Oyo grows and a need for some of these roles emerges in the future, we commit to reaching out to them first and offering them the opportunity,” he added.
“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,” Agarwal said.
While the company is laying off employees, the company also said it is making wide-ranging changes in its organizational structure.
Oyo said that members of projects that have now been ‘successfully developed’ and deployed such as ‘Partner SaaS’ had been either let go or were being redeployed in core product and newer tech areas such as AI driven pricing, ordering and payments.
Meanwhile, the company said it was adding people to the partner relationship management and the business development teams.
Additionally, Oyo is also reassessing its corporate headquarters base afresh and is “merging congruent roles and flattening team structures” where needed.