Report: Oyo to lay off half its Latam unit staff as SoftBank exits partnership

“The Latin American unit of Indian hotel startup Oyo Corp has ended its joint venture with the SoftBank Latin America Fund, less than six months after they struck a partnership in the region,” reported Reuters.

Details:

• Oyo Latam, the company’s Latin America unit, said it will lay off nearly half of its entire staff as its business moves toward a digital-only model.
• SoftBank has invested over US$1 billion in Oyo Corp, of which US$75 million was poured into Oyo Latam.

Context:

• Oyo has made massive job cuts in multiple regions including the US, China, and Indonesia in the past year as it struggled to overcome the challenges brought on by the pandemic.
• Meanwhile, SoftBank is making key executive changes to its Vision Fund after the unit rebounded from a loss a year earlier. SoftBank is also set to take at least six of its portfolio companies public this year.