Oyo Hotel and Homes has asked all its employees to take a 25 per cent pay cut between April and July, and has asked some people to take leave with limited benefits, or go on furlough for a period of four months- between May 4 until the end of August. The decision was communicated to employees by OYO chief executive officer for India Rohit Kapoor through an email
According to reports over 3,500 employees have been asked to go on leave with limited benefits.Talking about the impact Covid-19 has had on the hospitality business, Kapoor said in the email, "Hence, today, our company is taking a difficult but necessary step for India, whereby we are asking all OYOprenuers to accept a reduction in their fixed compensation by 25 per cent. This will be effective for April-July 2020 payroll. All other benefits and terms of your contract will remain unchanged. Also, note that this action will be planned in such a way that post the proposed pay cut, the fixed compensation for any employee is not less than Rs 5 lakhs per annum."
Referring to the 25-50% voluntary salary cuts taken by the executive team around the world and other measures, Kapoor said in his email that while Oyo is taking all the necessary actions to mitigate COVID-19's impact and ensure long term success and sustenance of the business the efforts undertaken so far may not be enough as the extent and projected length of the crisis is highly unpredictable. In January, Oyo had announced a restructuring exercise aimed at reducing costs and it involved a significant number of job cuts.