OYO founder Ritesh Agarwal has taken steps towards re-hiring the employees he has laid off from the hospitality tech start-up. The IPO-bound unicorn announced on Saturday that it will reduce 10 per cent of its 3,700-employee base and lay off 600 people as part of a ‘broad’ change in its organizational structure, while hiring 250 members.
Agarwal reached out to the hiring tech firms through social media platform Twitter on Monday. “For companies hiring in tech, reach out to us at firstname.lastname@example.org and we’ll share a directory to re-hire our outgoing colleagues,” he wrote.
He also wrote that he wants to make sure laid off employees get as much help and support as possible. “I will actively champion the strength of these talented individuals and support them every step of the way,” he added.
According to a statement received by the company, OYO is downsizing its product and engineering, corporate headquarters and OYO Vacation Homes teams. Additionally, it plans to add people in partner relationship management and business development verticals.
“It is unfortunate that we are having to part ways with so many talented individuals who have made valuable contributions to the company. As OYO grows and the need for some of these roles emerges in the future, we will be able to reach out to them first and Committed to providing opportunities,” Agarwal said at the time of the layoff announcement.
Recently, OYO reported a net loss of Rs 333 crore in Q2 FY23, down from Rs 414 crore in Q1 FY23. The IPO-linked company also disclosed in its addendum that revenue grew 24 per cent to Rs 2,905 crore in H1FY23.
OYO reported a 69 per cent growth in its gross booking values (GBV). GBV is the monthly revenue that the company earns per hotel. Despite the reduction in losses, some of the company’s core expenses continued to rise as per the results. Its marketing and promotional expenditure grew by 19 per cent in H1FY23 from Rs 336 crore in H1FY22 to Rs 400 crore.