Ritesh Agarwal, the founder of OYO Rooms, addressed his employees in a video message. In that video message, he was seen admitting that the company’s funds have fallen by “over 50-60%’ the previous weeks. He also accepts that the company’s cash in hand is under severe stress.
Will reduce every controllable cost-OYO Rooms
The ongoing COVID-19 crisis has taken a toll on every industry. Thousand of companies are now facing survival issues. OYO Rooms is one of them.
OYO is running out of funds. As a result, it has decided to reduce every controllable cost and minimize expenditures.
OYO cuts down more than 5000 jobs!
To survive in this situation of crisis, OYO rooms is cutting down its expenditure. As of now, it has already cut down more than 5000 jobs in the past few months. The company’s founder, Ritesh, assured the staff that they are not planning to fire any more people from their 2500 workforce.
He also assured that the company would emerge stronger after the crisis. The company is highly resilient and optimistic in the current situation.
After three years of successful sales graphs all across the globe, it is facing an unparalleled crisis that put their existence in question.
Dozens of problems for a company worth $10-billion!
Before the introduction of the COVID-19 pandemic, they were already facing difficulties from sprawling operations in several markets, including that of India and China. Their hotel suppliers from the two majority holders, India and China, were complaining about late payments and unfulfilled promises.
Even its largest financer, Softbank started questioning their ability to establish a viable business empire.
These problems have made it difficult for the country’s unicorn face of expanding its business. But now and then, they have managed to pull through the situations.
The entire nation is facing the fury of COVID-19. As of today, there are more than 12000 confirmed cases in the country. The numbers have nearly doubled in the former few weeks.