OYO’s Recent Layoffs: What Went Wrong?


OYO, a popular hospitality company based in Gurugram, has been making headlines recently due to its latest round of layoffs. The company has reportedly laid off around 600 employees, as part of its restructuring efforts. This news has come as a shock to many, especially since OYO had been expanding rapidly in recent years.

Company Background:

Founded in 2013 by Ritesh Agarwal, OYO started out as a budget hotel aggregator, with a focus on providing quality accommodations at affordable prices. The company quickly grew, expanding its presence across India and then branching out into international markets, including the UK, US, Southeast Asia, and Europe. OYO made a name for itself by leveraging technology to offer superior customer service and streamlined operations. This approach proved successful, and the company quickly became a unicorn, with a valuation of over $10 billion.

Funding and Investors:

OYO has been able to secure significant amounts of funding from its investors. The company has raised over $3.2 billion, making it one of the most well-funded startups in India. Some of its notable investors include SoftBank, Sequoia Capital, Lightspeed Venture Partners, and Greenoaks Capital.


OYO’s expansion strategy has been successful in many ways. The company was able to rapidly grow its customer base and establish a strong brand presence across the globe. However, this growth was not without its challenges. During its expansion phase, OYO faced a number of problems, including operational inefficiencies, regulatory problems, and disputes with hotel owners. These issues, combined with the economic impact of the COVID-19 pandemic, have led the company to restructure and refocus its efforts.

Reason for Layoffs:

According to reports, OYO’s recent layoffs were part of the company’s efforts to transition to a revenue-sharing model. This model involves partnering with property owners and sharing the revenue generated by the properties. This move is aimed at reducing operational costs and boosting revenues. As part of this restructuring, the company decided to lay off around 600 employees, primarily in support and operations roles. This move has sparked a great deal of debate, with many questioning the company’s motives and approach.

Statement from Company Stakeholders:

In response to the layoffs, OYO’s CEO, Ritesh Agarwal, issued a statement, saying that the decision was a difficult one, but necessary in order to ensure the long-term viability of the company. He also highlighted the company’s efforts to support affected employees, including providing severance packages and job placement assistance. The company has also stated that it remains committed to serving customers and growing its business, even in the face of these challenges.


In conclusion, OYO’s recent layoffs have generated a great deal of attention and debate. The company’s decision to restructure and transition to a revenue-sharing model is aimed at reducing costs and improving revenues. However, the move has come at a high price, with many employees losing their jobs. While the company has stated that it remains committed to serving customers and growing its business, the future of OYO remains uncertain. As the company continues to navigate these challenging times, it will be interesting to see how it adapts and evolves.

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