2020/01/12

thumbnail

Oyo is firing thousands of staff across China and India

  


Oyo Hotels is firing thousands of staff across China and India, people familiar with the matter said, adding to growing signs of trouble at one of the largest startups in SoftBank Group Corp.s portfolio.


The company has let go of 5% of its 12,000 employees in China partly due to non-performance, while dismissing 12% of its 10,000 staff in India. It plans to shed another 1,200 in India over the next three to four months. Oyo is undergoing a restructuring, trimming redundancy in China and India, leading to thousands of dismissals.


Oyos downsizing is another setback for Masayoshi Sons SoftBank, whose portfolio has been buffeted by recent trouble at WeWork and slumping share prices at Slack Technologies Inc. and Uber Technologies Inc. The billionaire has called for greater financial discipline among the founders in his portfolio, spurring job cuts at smaller outfits like Zume Pizza Inc. Other SoftBank investees, including Getaround, Wag Labs Inc., Fair and Brandless Inc., have had to cut staff or change business models once it became apparent revenue and profits were not living up to their once-grand ambitions.


Adding to Oyos challenges, hotel owners in China have been protesting in front of the companys offices, accusing the startup of violating contractual agreements. The growing turmoil may complicate SoftBanks efforts to raise a successor to the Vision Fund, the worlds largest pool of startup investments.


OYO is one of SoftBanks current crown jewels," said Michael Norris, research and strategy manager at Shanghai-based consultancy AgencyChina. Issues in China, OYOs largest market, continues the Vision Funds woes." It would make raising a similar-sized second Vision Fund a challenge, he added.


Son has been a keen supporter of Oyo founder Ritesh Agarwal, helping fund the hotel companys fast international expansion. Oyo had been growing at a rapid clip, but its reputation has suffered due to customer complaints about bad experiences along with grievances about poor or unfair treatment from several of the over 20,000 hotel owners in its chain.


SoftBanks Vision Fund has so far invested about $1.5 billion in Oyo, pushing its valuation to $10 billion. The company also counts Airbnb Inc., Sequoia Capital and Lightspeed Venture Partners as backers. It promoted its real estate business chief, Rohit Kapoor, to CEO for India and South Asia in December to shake up the business.


In its aggressive effort to acquire market share, Oyo offered hotel stays for as cheap as $4 a night, according to one person familiar with its practices. The company also stocked up on rented room inventory by signing exclusive deals and guaranteeing income to hotel owners. Its now allegedly reneging on those guarantees, the cause of the protests outside its Chinese offices, one person said.


Source: https://www.livemint.com






Editor's Picks




  • More and more Chinese women seek foreign husbands

  • Top 10 Common Differences Between Western and Chinese Culture

  • White guy hilariously imitates Chinese girls in 4-minute clip

  • 18 pictures that prove autocorrect is ruining our lives

  • English gone wrong, horribly wrong, on shirts in China

  • 24 awesome Chinglish signs

  • Top 100 usefull Chinese phrases

  • Xi'an university implements absurd female urinals to save water

Below is a paid advertisement


AlienShop is an online venture for expats in China. If you are looking to purchase awesome gadgets then do add us. AlienShop sells TV Box for International Channels, VPN, Mobile Phones, Laptops, MacBook's, iPads, Tablets. 

Capture your life moments with DSLR Cameras. We got you covered with almost every Electronic Accessories and gadgets you are Looking for. You Name it & we got it!

Long press the QR code to add us or add Wechat: Alienshop1 


Pay 200 to buy 150 English picture books


How to Buy:

Option 1: Buy at our Weidian () Panda Guides: Long press the following QR-code



Option 2: please add WeChat: 18115908753 and send request of "buy book"


\n

Subscribe by Email

Follow Updates Articles from This Blog via Email

No Comments

Blogroll