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    Senior executives quit Oyo, company extends furloughs for some employees

    Synopsis

    For its employees on the leave with limited benefits plan, Oyo said it is offering a cash benefit equivalent to their notice pay basis last drawn compensation in March 2020.

    Oyo has not specified how many employees in India had been put on the leave with limited benefits plan.
    NEW DELHI: Two top-level executives have quit Oyo Hotels & Homes even as the hospitality chain extended mandatory leave of a chunk of its employees by six months and offered them voluntary separation amid the Covid-19 crisis.

    Gaurav Ajmera, global head of revenue management, and Burhanuddin Pithawala, global head of marketing and growth, have quit, Oyo said in an internal note to employees on Friday.

    The company has promoted Anuj Tejpal as its global chief commercial officer to head revenue (including OTA), marketing and growth. Tejpal was previously global business development leader.

    Chandan Agarwal, who was managing Oyo's cloud kitchen business, had also left earlier, people close to the development said. An Oyo spokesperson confirmed this to ET.

    In a separate blog post, the company said employees on leave with limited benefits plan in India can now either choose to opt for a voluntary separation programme (VSP) or continue with the existing arrangement until February 28, 2021.

    “We don't quite know when our occupancies and revenues will recover to pre-Covid levels,” it said in the blogpost. “In such a situation, we do not foresee any more roles opening up anytime soon.”

    As part of its restructuring in India, Oyo has elevated Abhishek Bansal as chief revenue officer and Yatish Jain as head of marketing and growth. Bansal was previously leading revenue management for franchise business while Jain was vice president, supply growth, franchise business, the company said in its internal note.

    After resorting to pay cuts in fixed compensation of up to 25% during the national lockdown in April, Oyo had put some of its employees on leave with limited benefits for four months from May. Earlier in August, the company communicated to employees that it is restoring salaries of all employees in India with a fixed compensation of Rs 8 lakh and the restoration will gradually get extended to all employees. But, the leave with limited benefits plan has been extended. The company did not specify how many employees in India are on leave under this plan.

    About the voluntary separation plan the company said, “While the choice is theirs to make, we request them to attend to the several important elements to the proposal which will help them make an informed decision.”

    Oyo said for employees opting for voluntary separation, it is offering a cash benefit equivalent to their notice pay based on their last drawn compensation in March. “This is beyond the 30% ex gratia pay that was enabled for the months of May and June, respectively for some upfront liquidity,” it said in the blog post.

    It said the company had also granted restricted stock units (RSUs) to all employees and that employees who opt for the voluntary separation are being given a choice to cancel up to 25% of their unvested RSUs and get additional cash benefit equal to 25% of their March 2020 drawn fixed salary.

    Oyo said it will continue to provide healthcare coverage of the current corporate health insurance policy up to January 25, 2021 and that it has partnered with ABC Consultants to offer career transition support to these employees.
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