“One of the implications of the new strategic objectives for 2020, is that … we will reorganize more teams across businesses and functions,” OYO CEO Ritesh Agarwal said in a letter to employees Monday, which a company spokesperson shared with CNN Business. “This means that, unfortunately, some roles at OYO will become redundant as we further drive tech-enabled synergy, enhanced efficiency and remove duplication of effort across businesses or geographies,” he added.
“This has not been an easy decision for us,” Agarwal said, in regard to the layoffs. “We are doing everything we can to ensure that our outgoing colleagues receive as much assistance and support as possible through this transition.”
OYO, which Agarwal founded six years ago when he was 19, started as a platform to aggregate budget hotels across India but has since branched into leasing and franchising its own properties like a traditional hotel chain. It now has more than 35,000 hotels around the world including in India — where it has more hotels than any other company — China and Europe.
“We take all the allegations very seriously and are looking into each and every one,” he said, adding that the company continues to undergo regular external audits and is investing in compliance, training and governance.
“We are — and will always be — committed to growing OYO the right way,” he said.
SoftBank did not immediately respond to a request for comment.
Agarwal said OYO will focus on sustainable growth, profitability, training and governance.
“Change can be hard,” he said. “It requires tough choices and it demands bold actions.”