Oyo Enacts Layoffs And Decreases Room Offerings
Oyo is a startup that was focused on providing budget hotel rooms to customers. It is one of the many startups that is backed by investments from SoftBank’s Vision Fund. However, despite large investment sums from the Vision Fund, Oyo is downsizing its operations heavily. It has decreased the number of rooms that it offers by 65,000. That is a 25% decrease in room offerings. Additionally, the startup no longer offers rooms in 200 cities throughout India that it had previously last month.
With the decrease in room offerings has also come a decrease in workforce. Oyo has laid off over 2,000 employees throughout its global offices. The layoffs started last week.
“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,” Ritesh Argarwal, Oyo’s chief executive wrote.
SoftBank’s Vision Fund had $100 billion in capital and invested in a wide range of startups. However, these startups have had trouble reaching profitability. The most famous example being the decline of WeWork, which has experienced a sharp decline in value from $47 billion to $8 billion.