Amid coronavirus outbreak, Oyo set to cut about 5,000 jobs globally

Oyo will lay off 5,000 employees from its global workforces as the coronavirus (COVID-19) outbreak hurts business in China.

The SoftBank-backed company will be making the highest number of layoffs in China, where it is planning to fire half of its 6,000 strong staff.

Oyo will also be laying off staff in the US as well as its home country India, as it seeks to boost its profits. It further looks to temporarily lay off some of the company's 4000 discretionary staff members.

The hospitality firm is working on an overhaul of its global operations. Its global workforce would reduce by 17% from 30,000 in January.

Ritesh Agarwal, Founder and CEO, Oyo Hotels, said, “By the time our restructuring process is complete, OYO will have over 25,000 employees worldwide.”

COVID-19 has killed more than 3,000 people and infected over 90,000 in China. Several countries have been issued advisories restricting travel to China, which has hurt the hospitality industry.

“It is a difficult time for its hotel partners in China. In China, the coronavirus has hit us and in specific provinces, we are trying hard to keep hotels open, as many as possible,” Agarwal added.

The company’s focus in 2020 is on growth with profitability.