Oyo moves to hybrid workplace model for foreseeable future in India; reconsidering office spaces

Earlier this year, Oyo sent some India employees on leave with limited benefits besides implementing across-the-board pay cuts.

Oyo Hotels & Homes on Tuesday announced that the firm has moved to a hybrid workplace model for the foreseeable future in India. The company is “reconsidering office spaces” and is revisiting contracts with landlords across the country to arrive at mutually acceptable terms, a spokesperson said.

The hybrid model that includes a mix of work from home, work from anywhere and work from flexible co-working spaces is helping the company operate in full capacity across the country, Oyo claimed.

The hospitality sector, that is heavily dependent on travel and tourism, has been severely impacted by the pandemic. India had imposed a nation-wide lockdown starting March 25 and moved to unlock the economy in phases in June. As cases continue to surge, many states have resorted to localised lockdowns, hurting businesses. Many start-ups, primarily thriving on external funding have given up office spaces and laid off employees to rein in costs. Well-funded Swiggy had earlier said that it will significantly reduce every single indirect cost like hubs, office infrastructure, etc, as “it is one of the areas where we feel the cut is most prudent given it doesn’t affect customer or employee experience.”

Earlier this year, Oyo sent some India employees on leave with limited benefits besides implementing across-the-board pay cuts. In May, India and South Asia CEO Rohit Kapoor had said he was hopeful of business recovery to gradually start in the July-September quarter. In a recent interview, founder Ritesh Agarwal said the firm is witnessing “green shoots” in India.

Oyo’s consolidated losses increased to $335 million in the year to March 2019 from $52 million in FY18 as expansion into international markets, including key market China entailed heavy costs.

While a significant majority continue to work from home, several teams have chosen to work from anywhere while others have opted for flexible co-working centres offered by the company’s co-working arm, Oyo said in a statement.

“At Oyo, we have adopted a hybrid workplace model keeping in mind the evolving needs of the current and future workforce,” said Dinesh Ramamurthi, chief Human Resources Officer.