“The co-working industry is seeing more companies
opting for availability of flexible office solutions and co-working models to reduce long term blockage of capital in leases and furniture," said Ritesh Malik, founder, Innov8, a co-working startup that Oyo
acquired in March last year.
This comes at a time when the Softbank-backed startup terminated lease contracts of two of its offices in Gurugram last week in order to cut costs. Its headquarters in Udyog Vihar and Spaze Palazo office were vacated by invoking the ‘force majeure’ clause. In response to the development, the company earlier said it was reconsidering office space requirements and revisiting contracts with landlords, not just in Gurugram, but across the country, at mutually acceptable terms.
pandemic and global lockdowns have made people rethink their travel plans. This has adversely affected the company's business model. Last month, Oyo
decided to lay-off a large number of its employees in the US, while salary cuts of up to 25 per cent were imposed during the April to July period. In a unique move, Oyo also decided to make each of its employees a shareholder of the startup through a 'deep-discounted Employee Stock Ownership Plan'.