Income tax authorities, on Friday (January 11) reportedly carried out a surprise search at Indian hospitality unicorn Oyo’s Gurugram office.
Speaking to Livemint, spokesperson of the SoftBank-backed hotel chain said that a routine TDS survey is in progress in one of the company’s offices. “We are cooperating with the authorities, and are committed to engaging with all relevant stakeholders,” the spokesperson said.
According to the media report, the reason for the search has not been shared yet. Oyo is yet to respond to the queries.
Meanwhile, other reports suggest that Oyo is laying off thousands of employees in India and China. The company has fired close to 5% of the total 12K employees in China and around 1200 people in India.
The decision to layoff employees also comes at the backdrop of Oyo’s plans to list publicly in the US in 2022-2023. SoftBank reportedly gave Oyo a deadline of March 31, 2020, to phase out contracts or businesses that are not EBITDA-profitable.
Speculation about the layoffs was already rife in December 2019. It was back then reported that the company has decided to lay off around 2,000 of its employees by the end of January 2020. Oyo, however, had said that it only terminates contracts of those employees that fail in its performance-based evaluation system.