After acknowledging that it asked some of its employees to explore careers outside the company, SoftBank-backed Oyo has begun the process of notifying thousands of staffers individually about their status in the organisation through individual emails, people familiar with the matter said.
Layoffs in locations like Delhi and Jaipur were communicated to the staff on Monday, while in Gurugram, employees were notified on Tuesday. The people said the firm fired about 200 employees in Delhi on Monday.
The job cuts come after the company charted out its ‘new strategic objectives for 2020’ in an internal email on Monday. ET has seen emails sent to some employees who have been retained by the company.
One such email sent by an employee’s manager read: “Dear Oyopreneur, thank you for attending today’s all hands meeting. As per the reorganisation in our hub, your role is NOT impacted. Considering the sensitivity of the situation I advise you to maintain utmost confidentiality on the matter. Please continue your work plan, field visits, meetings, and calls for today as you had planned … I look forward to seeing you tomorrow and continuing to work together to meet our business goals.” Oyo did not respond to ET’s queries on the matter till the time of going to press on Tuesday.
Read: OYO is laying off around 2,400 employees in India, may let go more in March
The people said Oyo was giving a month’s salary to employees who have worked in the company for a year, two months’ salary to those who have worked two years and three months’ salary to those who have stayed on for three years.
It also informed staff that it was doing much more than the required due HR processes followed by other companies in the country.
Oyo is also offering the variable pay due to sacked employees, gratuity, now being called ex-gratia, for the period worked, along with three months of medical coverage, they said.
The layoffs include profiles like that of city heads who are responsible for managing the city operations of the chain.
ET was the first to report on the company’s plans of laying off about 2,000 employees in India across functions by January-end to save on manpower costs and make some of its processes more ‘tech-enabled’, in its edition dated December 19.
Sources had told ET at the time that divisions like sales, supply and operations would account for a chunk of the layoffs and that area managers who take care of operations in places like Gurgaon would also be in the firing line.
Leave a Reply