Due to decreasing revenue in the travel sector, popular budget hotel startup, Oyo, has placed large number of their employees on temporary (unpaid) leave.
This move is focused on helping the company extend its cashflow runway, as revenues have dipped by as much as 60% due to a significant drop in travel worldwide.
Despite the leave granted, health benefits will remain in place for staff members throughout its foreseeable duration.
Chief Executive Office, Ritesh Argawal mentioned that the runway has been “under severe stress”, and the company is looking at every controllable cost it can reduce right now.
This isn’t just the case specific to Oyo, as hotels from all around the world have been affected as well, with some even posting record revenue declines of over 75%.
Agarwal also announced that he will forgo all his salary for the year, while the leadership team’s have agreed to take pay cuts of 25% to 50%.
It isn’t all doom and gloom however as Oyo’s business in China has seen an occupancy rise by 5% week on week over the past few weeks.