Oyo India to pay 'generous separation' package to laid off employees
The company’s CEO said that layoffs will be ending 'very soon'
The Softbank-backed company’s CEO for India and South Asia, Rohit Kapoor also told Economic Times that, “before this one-time exercise started, we stood at approximately 12,000 employees across our businesses. We have asked about 15-20% of the workforce to move to a different career.”
He said that this was a one-time exercise and will be ending “very soon”. He added, “We are not talking months or even next month. After this there is no plan.”
When Hotelier Middle East contacted Oyo, a spokesperson said: “As is true for most organisations experiencing rapid growth, the company has to actively evolve and respond to challenges of both increased costs and reduced efficiencies that accompany redundancies. Optimising our workforce requires some tough but necessary decisions of consolidating functions across and within geographies, improving productivity through technology and centralising operations in line with changed priorities and our future roadmap for success.
"While this means that many colleagues will transition out of the organisation, our responsibility towards those who have helped us reach where we are today exhorts us to go the extra mile in the assistance that we offer. We are committed to doing the right thing across all respects including but not limited to ex-gratia, medical insurance continuity, outplacement agency support, etc. We will continue to stand strong with not just those who are impacted by this decision, but also with those who will remain an integral part of OYO beyond today. In their well-being lies our true metric of success," the spokesperson added.
Each employee that was laid off will receive:
• Generous separation package for each employee affected by the exercise – comprising full notice pay, additional compensation, ex-gratia and continued medical coverage for a period of time.
• Outplacement services.
• Counselling services on standby.
• Full training by external experts to everyone handling the sensitive conversation.
• All employees in special situations [not limited to, pregnancy, distress in family, serious medical issues] will be kept out of the exercise.