India-based hotel company OYO Rooms announced Wednesday that
because of a drop in revenue of up to 60 per cent due to the coronavirus
pandemic, the company will furlough employees in the US and "select other
markets" for a minimum of 60 to 90 days. The company provided neither a
number nor a percentage of affected employees, nor did it specify the markets
outside the US that will be affected.
CEO Ritesh Agarwal promised the Indian government that
employees in India will not be furloughed, nor will they have their salaries
reduced, during the country's three-week lockdown period, which began 25 March.
The company did not elaborate on whether there will be furloughs following that
period, but it did note that "it is not considering job cuts at any
location at this time, despite significant economic pressures".
In a transcript of a video produced by the company for
employees, Agarwal said that health care benefits for those employees on leave
or furlough will continue.
It comes after OYO announced it was placing the majority of
its UK staff on furlough under the government’s coronavirus job retention
scheme.
As BTN Europe previously reported, Agarwal is foregoing his
salary for the remainder of the year. In addition, members of the company's
senior leadership team have taken a minimum 25 per cent pay cut, with some
volunteering for 50 per cent cuts.
The furloughs come just three months after the company laid
off thousands globally in a restructuring.
"As you all know, this situation of Covid-19 comes at a
very unique time for OYO," Agarwal said in the video. "Due to [its
timing after the restructuring], I want to clarify for all of you that we
intend to do no or negligible layoffs as a part of cost restructuring across
the world."