Indian hotel operator OYO is undergoing a massive downsizing in China, with half of the employees on certain teams, such as business development and operation planning, facing layoffs, according to a report by Chinese media outlet Jiemian.
About 1,000 employees of the 2,000-strong business development team and half of the operation planning team will be fired, said Jiemian.
When contacted by 36Kr on Monday for a comment, OYO China said that the company will “never compromise with dishonest behavior” and “does not tolerate continual failure to meet targets.”
Those statements are in line with a remark recently made by Wilson Li, OYO China’s chief financial officer and partner. He told ChinaTravelNews in March that OYO had only reached 20–30% of its targets for project development, transformation, operations management, and distribution capabilities, adding that the value of OYO “will be delivered” if the percentage reaches 60% or even 80%.
OYO entered China in November 2017. By February 2019, it had signed more than 6,700 franchised hotels, which were previously operated under various brands, in less than one and a half years, according to ChinaTravelNews.
36Kr is the parent company of KrASIA.