Oyo is also expected to undertake a retrenchment exercise in other geographies where it operates. Last week, news agency Bloomberg reported that it had dismissed 5% of its 12,000-strong staff in China, its second home market.“Oyo’s SilverKey business (for corporates) has almost been disbanded,” the company executive, who is not authorised to speak to the media, said.
The company could also streamline operations, moving its various hospitality brands, Oyo Home, Oyo Life and SilverKey within the same business function, the executive added.Other non-core business lines, such as wedding-focused event management company Weddingz, which have been described as a “non-performing bet” are also expected to undergo significant cuts in investments.
Additionally, Oyo has also offloaded about 25% of its unprofitable properties in India across businesses, one of the largest cleanups for the country’s largest real estate aggregator, a second senior company executive told ET, also requesting anonymity. The layoffs have come at a time when the firm is battling allegations of anticompetitive practices and bribery among others, according to a report by the New York Times.“Recently, there have been a few questionable claims in a publication and today I want you to hear about them from me. The said article described behaviour that would violate our code of conduct. We take the allegations seriously and are looking into each and every one,” Agarwal said in his email.“We, of course, continue to be subject to regular external audits and have reached a stage as a company where we are making significant investments in compliance, training, and governance that ensure operational consistency and accountability,” he added.