Oyo India to pay 'generous separation' package to laid off employees

The company’s CEO said that layoffs will be ending 'very soon'

As part of the severance package each laid off employee will receive counselling services
As part of the severance package each laid off employee will receive counselling services

Hospitality company Oyo Hotels and Rooms will be paying a “generous separation package” to each employee that was laid off this year, a company spokesperson told Hotelier Middle East.

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.

For all the latest hospitality news from UAE, Gulf countries and around the world, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page.

Most Popular



Human Capital Report 2017

Human Capital Report 2017

The second annual Hotelier Middle East Human Capital Report is designed to explore the issues, challenges and opportunities facing hospitality professionals responsible for the hotel industry’s most important asset – its people. The report combines the results of Hotelier Middle East's HR Leaders Survey with exclusive interviews with the region's senior human resources directors.

Hotelier Middle East Housekeeping Report 2016

Hotelier Middle East Housekeeping Report 2016

The Hotelier Middle East Housekeeping Report 2016 provides essential business insight into this critical hotel function, revealing a gradual move towards the use of automated management and a commitment to sustainability, concerns over recruitment, retention and staff outsourcing, and the potential to deliver much more, if only the industry's "image problem" can be reversed.

From the edition

From the magazine