Oyo sends staff on furlough
SoftBank-backed Oyo Hotels and Homes has cut salaries of all employees in India by 25 per cent for four months starting in April and has also sent nearly 3,000 employees to leave without pay from May to August, according to an internal memo.
The salary cut comes soon after Oyo furloughed thousands of its international employees earlier in April.
While these efforts have helped, “they may not be enough, as the extent and projected length of the crisis is highly unpredictable”, chief executive Rohit Kapoor said in a note on Wednesday.
“We are asking all Oyoprenuers to accept a reduction in their fixed compensation by 25 per cent,” he said.
Some employees will also be placed on leave without pay and with limited benefits such as medical insurance, from May 4 and until August, he said, adding that the company is evaluating more cost-cutting measures.
Those going on this leave will get continue to get medical insurance and parental insurance, school fee reimbursement and ex-gratia support, he added.