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Oyo furloughs staff worldwide after coronavirus hit

Japan unit of SoftBank-backed hotels group to slash costs by transferring employees

Oyo's headquarters in India. The company's CEO said many employees would be placed on temporary leave. (Photo by Akira Kodaka) 

TOKYO -- India's Oyo Hotels and Homes will place thousands of employees on monthslong temporary leave to cut costs, admitting to "severe stress" as revenues have more than halved during the coronavirus pandemic.

In Japan, the company will use a secondment scheme within SoftBank Group, its biggest investor, to cut "personnel costs to more than half," according to an email sent to employees. A similar program was introduced earlier this year by an Oyo real estate affiliate in the country after its joint venture partner sold its $77 million stake for a nominal $3.

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