OYO China lays off more than 1,000 staff members

The company says it has “zero tolerance for underperformance.”


OYO China lays off more than 1,000 staff members

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.