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OYO announces furlough in select global markets; India safe
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SME Times News Bureau | 08 Apr, 2020
As the travel and hospitality industry goes through a near-standstill
scenario amid the coronavirus crisis, hospitality major OYO on Wednesday
announced furloughs or temporary leaves of 60-90 days for its employees
in the US and select other markets, while keeping its staff in India
untouched from the move.
In a video message and a letter to the
employees and all other stakeholders, OYO Founder and Group CEO, Ritesh
Agarwal said that the company will be placing a certain number of its
employees, 'OYOpreneurs', on furloughs.
He also confirmed that
keeping its promise to the government of India, OYO is committed to zero
actions that impact employment status and salaries of ten thousand plus
'OYOpreneurs' on payrolls and tens of thousands of OYO managed assets
staff, during this unprecedented period of a 21-day countrywide
lockdown.
"As you all know, this situation of COVID-19 comes at a
very unique time for OYO. This is right after we had a sizeable
restructuring of our company in January of this year. Due to that, I
want to clarify for all of you that we intend to do no or negligible
layoffs as a part of cost restructuring across the world," Agarwal said.
He
added that it is important that the OYO's leadership team ensures that
the right decisions are made for the long-term success along with
decisions on what is right for the long-term cash runway for the
company.
"Given that, a significant number of 'OYOpreneurs',
across the world are being placed on temporary leaves or furloughs of a
minimum of 60 to 90 days and the details of these will be made available
from HR teams of your respective countries," he said.
OYO,
however, would continue all the benefits of healthcare and medicare for
the impacted 'OYOpreneurs' on leaves or furloughs, he added.
He
also informed that 10 of the company's employees, 'OYOpreneurs', have
been tested positive with the Coronavirus, and a few of them have
already recovered, in China, Brazil in Latin America, and others.
Noting
the severe economic impact of the coronavirus crisis, he said that
there is no other sector as badly impacted as the travel, tourism and
hospitality.
He noted that the revenues of OYO and the
occupancies have dropped by over 50-60 per cent. The CEO, however, said
that the global leading hotel chains have all dropped their revenues by
over 75 per cent and continue to get worse.
A company statement
said that as global occupancies continue to reduce in the hospitality
industry, the temporary leaves in select other markets will give the
company the opportunity to do what is right for the business while
ensuring that employees are safeguarded against a potential job-cut.
"Basis
careful consideration of all possible options, this decision of
instituting furlough or temporary leaves for a certain number of
'OYOpreneurs' is the best way to ensure jobs are safe while keeping
costs in check. This option will enable OYO to continue supporting
healthcare coverage and other associated benefits, which is important
during such tough times," it said.
The company said that it is
also hopeful that as the situation begins to improve globally, they will
be able to bring as many of its employees as possible, back to
full-time work at OYO.
Highlighting some recent positive
instances, Agarwal told his employees that there has been small recovery
in some markets like China, Denmark and Japan.
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