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Oyo Furloughs Thousands of Workers in Setback for SoftBank

  • The Indian startup moves to rein in costs to survive Covid-19
  • Oyo’s hibernation deals another blow to SoftBank’s portfolio
Pedestrians walk past an Oyo hotel, in Tokyo.

Pedestrians walk past an Oyo hotel, in Tokyo.

Photographer: Toru Hanai/Bloomberg
Updated on

Oyo Hotels & Homes, the Indian budget lodgings service backed by SoftBank Group Corp., is placing thousands of employees globally on indefinite furlough as it tries to survive through the coronavirus pandemic, according to people familiar with the matter.

Oyo said in a statement employees in countries excluding India would be affected without specifying numbers, adding that it’s not considering job cuts at this time. The startup, one of the largest in SoftBank’s portfolio, hasn’t yet determined the precise number of workers impacted because it is sorting through labor laws in various countries, said one of the people, who didn’t want to be identified disclosing internal discussions.