Hospitality company Treebo has laid off between 70-80 workers, or about 10% of its 800- strong workforce. Currently, It consists of 800 people working under its brand. These layoffs are in line with the company’s efforts to double down on its technology products and processes even as it looks to rationalise prices.
Treebo Hotels is India’s third largest hotel chain which operates in the budget segment of the hospitality industry. It operates on a franchise model and emphasizes quality control along with 10,000 rooms and 400 hotels in over 85 cities operating exclusively under its brand, it also competes with FabHotels and Oyo Rooms.
As the company’s spokesperson said, “This, in turn, has allowed us to now take a critical look at our payroll and other costs, and rationalise them in line with our future plans, thereby driving better economic health.”
Founded in June 2015, by Sidharth Gupta, Rahul Chaudhary, and Kadam Jeet Jain with the aim of providing high-quality hospitality in the unorganized and fragmented budget segment of this industry, it is headquartered in Bengaluru, India. It is basically a technology-enabled budget hotel brand.
Treebo has made significant investments in technology products and process innovations since the early days of its journey, even when it was small in scale, and this has lead to the speedy growth of the start-up, due to such capabilities, it has made it slant and systematic as a company.
The Treebo spokesperson said that the corporate was dedicated to serving to the workers, discover different alternatives.
“We now have tried our greatest to supply them a clean exit by issues like an applicable severance package deal, accelerated vesting of ESOPs for colleagues nearing vesting milestones, and help find the subsequent alternative,” the spokesperson mentioned.
According to the reports, the layoffs have been across multiple functions – including technology, quality assurance, and business development and across locations. The management has offered two months’ salary as a severance package to the laid-off employees.