The magnitude of the firings may be “far larger” than expected, they said on the condition of anonymity. A significant chunk of the 12,000-strong workforce at the Gurgaon-headquartered company is likely to be impacted by the aggressive retrenchment move, they said.
An Oyo spokesperson denied that there were further retrenchments in the offing and said that such information is “factually incorrect and misleading.”
The layoffs are happening even as Oyo is reportedly battling allegations ranging from anti-competitive practices to tax evasion, among others.
Its position as India’s second most valuable startup – deemed to be worth $ 10 billion — has also come under scanner, especially after Founder and group CEO Ritesh Agarwal undertook a $2.5-billion financing round last year in order to buy out early investors Lightspeed Venture Partners and Sequoia Capital, and increase his stake in the company to about 30%.
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