(Yicai Global) June 25 -- Oyo Hotels has not denied a media report that said that the Indian lodging provider will lay off 1,000 employees in its Chinese unit.
Oyo has no tolerance for underperforming teams, it responded to news outlet QQ Finance.
However, the company will constantly invite talents as it aims to become the world's largest hotel chain and is likely to have more than 10,000 employees next year, the Gurgaon-based firm said. Late last month it had 8,000 workers in China.
The company will let go of 1,000 employees, Chinese media outlet Jiemian reported yesterday.
Oyo began expanding aggressively in China last June, signing one-year contracts with hotel owners. The company recently announced that it aims to retain and attract more franchisees by offering guaranteed contracts for those hotels that performed well during the first year. This means that the franchisor will give 50 percent of last year's revenue to the franchisees each month as a base.
Founded in 2013, Oyo opened its first Chinese hotel in Shenzhen in 2017. It secured USD800 million from SoftBank Group and Sequoia Capital last year and spent three-quarters of that to secure views on Chinese platforms Ctrip and Meituan. The firm also has operations in Malaysia, Nepal and the UK.
Editor: Emmi Laine