(Yicai Global) March 13 -- Indian hotel chain Oyo Hotels & Homes, which is rumored to be laying off 3,000 workers in China, has claimed the move was already in the works before the outbreak of the novel coronavirus Covid-19.
The Haryana state-based firm began planning the layoffs at the end of last year amid a global strategic shakeup, The Paper cited Oyo as saying. The company, which said it will determine how many staff members it will let go in the coming weeks, claimed it was supposed to start the cull in January but the epidemic led to delays.
Bloomberg reported on March 4 that Oyo was laying off 5,000 workers worldwide, including 3,000 in China -- half of its full-time workforce in the country -- as its China business was falling apart.
The budget hotel chain had entered 338 Chinese cities, mostly third-, fourth- and fifth-tier areas, as of December, after just two years in the country. It had over 19,000 hotels and more than 780,000 rooms after doubling the latter figure throughout last year's second half.
Oyo is still paying salaries and bonuses on time, it added.
Editor: James Boynton