This large Indian startup stops paying salaries to 3,500 staff
New Delhi: Corona virus is wreaking havoc for the economic activity and one of the hardest hit sectors is travel and hospitality. Hotel room aggregator OYO is learnt to have stopped paying salaries to its 3,500 employees and is forcing them to go on leave without pay.
The Indian startup, which has now operations in several other countries, is forcing employees to sign up a Google form to go on leave without pay till August.
The company had earlier said it would reduce the salaries of the staff by only 25 percent.
All this is happening when the Prime Minster of the country Narendra Modi has appealed to all the business not to lay-off or reduce salaries in these extreme times.
Oyo has found itself in the middle of whole lot of controversies, especially in its home country India. The partner hotels have alleged that the company has not paid them their dues for many months now.
Oyo Hotels & Homes had suffered a loss of around Rs 2,200 crore for the fiscal year 2018-19, far higher than the loss of Rs 350 crore it suffered in the previous fiscal. The revenues of the company stood at around Rs 7,000 crore including international operations for the 2018-19 fiscal.
In India, OYO had a loss of Rs 560 crore for the financial year 2018-19.