Hotel aggregator OYO is planning to lay off more than 1,000 people in India as part of its restructuring plan across businesses and functions to rationalise its manpower.

The layoffs were happening across roles, especially where there is duplication of teams in different geographies. The company’s founder and CEO Ritesh Agarwal in a letter addressed to all employees on Monday said that as the company will reorganise teams across businesses and functions, some roles at OYO

will become redundant.

The letter read that OYO has set new priorities for 2020 which would impact some employees, “who would have to leave the company”. Agarwal added that the company was "looking into each and every allegation" described in a recent NYT article on the company's malpractices.

Sources told CNBC-TV18 that the company was preparing to lay off 1,000 employees this month of its total strength of 10,000.

In the letter titled “2020 - A renewed focus on economics, excellence, people and values”, Agarwal said: “I have no hesitation in admitting that growing at the pace at which OYO has in the past few years, we sometimes went ahead of ourselves and pressure-tested our organisation at multiple levels. This year, we are taking steps to address this."

Agarwal referred this development as '2020 roadmap and priorities', in which he cited sustainable growth, operational excellence, profitability, training and governance as the main priorities.

"I recently reorganized OYO's CXO leadership to focus and commit to delivering these strategic objectives. Over the past few months, we also successfully transitioned many of our colleagues into more meaningful roles within OYO by providing mentorship, training and tools to be successful," Agarwal’s letter read.

Troubles seem to continue for OYO. Apart from layoffs, the company also has seen Income Tax officials visiting one of its Gurgaon offices on Friday. Sources stated that it was part of a TDS verification.

First Published:Jan 13, 2020 6:55 PM IST