Homegrown hospitality unicorn OYO will be merging its hotel booking and apartment-rental operations of OYO Life in Japan, as a result of the aftereffect of the pandemic, according to reports (1).
The company will also be promoting the OYO Life country head, Ryoma Yamamoto, to the position of the CEO of merged OYO Japan.
OYO had huge expansion plans for its business in Japan. However, the pandemic has drastically affected the hospitality business, which is why OYO had to merge its two separate operations into one in Japan.
Another top executive named Ryota Tanozaki has been promoted to the position of Yamamoto’s deputy.
Last year Yahoo canceled its joint venture with OYO Life in Japan and later bought back its ownership in the joint venture company.
Declining revenues amid pandemic
OYO has been open about its struggles with the revenue ever since the pandemic caused havoc in the travel and hospitality segment.
Ritesh Agarwal, Founder & CEO at OYO, stated that OYO’s occupancy rate and revenues dropped by over 50-60% due to the lockdown, and even the firm’s balance sheet came under severe stress.
OYO has been facing severe difficulties due to the sudden fall in its revenues, due to which the company had to incur 25% salary reductions and layoffs in the 80 countries in which it operates.
According to a report, OYO laid off almost 90% of its workforce in the US, most of whom were laid off in April amid the declining revenue in the pandemic.