OYO Allots ESOPs Worth Rs 130 Crore For Furloughed Employees
Ritesh Agarwal, Founder, and CEO, OYO had earlier said on April 8th, 2020 that the company will place a certain number of employees on furloughs or temporary leaves after it froze operations globally due to COVID-19 pandemic.
Softbank-backed hospitality chain OYO has allotted ESOPs (employee stock ownership plan) worth ₹130 crores ($18 million) for its furloughed employees who have been negated in lieu of the corona-virus pandemic. The announced strategy is part of the company's efforts to curtail and lessen the economic commotion experienced by employees after the COVID-19 outbreak, an inside e-mail from its founder Ritesh Agarwal said on Monday.
Addressing the issue of the furloughed employees, Agarwal said in his e-mail that they are free to look for jobs and opportunities in different companies. He also informed about the inauguration of a placement cell being put in place for the employees stating how a similar initiative has helped 150 employees of OYO in Japan to find job opportunities and leads. The company has also molded an emergency fund for the employees who may need it for some critical illness cases.
"This is the first time in the history of the company that such a large part of the organization is being inducted as a stakeholder. That too at a time when some of you may decide not to be part of our future. This is a small token of gratitude from us for your contribution to building this company and for your unwavering support to us in good as well as bad times," said Agarwal.
Earlier, Agarwal had estimated a 15-20% drop in revenues and occupancy with regard to the Covid-19 situation but later he corrected that the revenues dropped by 50-60%, globally. The e-mail sent to the employees on June 1st, 2020 explained how they had tried to cut down the expenses by reducing the marketing costs 88%, the general administrative expenses by 43%, etc. OYO is one of SoftBank's biggest bets, with the Japanese multinational conglomerate holding a 46% stake. The hotel-chain which has been closed since 25th March will resume its operations from June 8th, 2020.