Ritesh Agarwal headed Oyo may trim 2,000 staffers in 2020

Source :SIFY
Author :SIFY
Last Updated: Thu, Dec 19th, 2019, 21:16:10hrs
Ritesh Agarwal headed Oyo may trim 2,000 staffers in 2020
As many as 2,000 staffers of Oyo Hotels and Homes are likely to face the axe according to a latest media report.

On Wednesday, the ET quoted insiders from Ritesh Agarwal headed Oyo Hotels as saying that the company was looking to fire as many as 2,000 heads by the end of the first month of 2020.

Some of the reasons the insiders reported were rising discontent among hotel owners and denting business.

In the same report, the official statement from the company refuted the forecast by saying, "OYO does see technology replacing select roles in various business side engagement buckets... However, (we) deny that OYO anticipates replacement of thousands of people in the near term."

In recent times, the losses for Oyo have increased. It was only in November that an internal company report forecast losses continuing until 2021. Softbank, the major investor in Oyo, on the other hand has seen troubles such as raising funds for a second investment fund and troubles around WeWork. There are also questions that Softbank has to address over path to profitability in its other marquee investments such as that of Uber.

Oyo reportedly fired at least 60 sales-related staffers from New Delhi and Gurugram offices. The startup also fired 25 associates from its China operations citing unethical practices.

Meanwhile, the 26 year old founder of Oyo, Ritesh Agarwal saw his fortunes grow richer in the year. According to Hurun India Rich list, Ritesh is the Youngest wealthy under 40 with fortunes estimated at over a billion dollars (or Rs 7117.25 crores). In July'19, Agarwal purchased $2 billion worth of shares in Oyo, tripling his stakes.