India’s top-rated budget hotel chain Treebo Hotels, operated by RubTub Solutions has laid off around 70-80 employees or nearly 10% of its workforce, from a total workforce of 800 people. These layoffs are a result of company’s focus on technology and innovations to reduce costs and inefficiencies in the process.
As told by the spokesperson, 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. These capabilities have not only helped the startup grow rapidly but have also made it lean and efficient as a company.
He further added,”This, in turn, has allowed us to now take a critical look at our payroll and other costs, and rationalize them in line with our future plans, thereby driving better economic health.”
As per sources, the layoffs have occurred across various functions including technology, quality assurance, and business development, across various locations.
The spokesperson also said that they have tried to make the exit for their employees as smooth as possible by providing an appropriate severance package, accelerated vesting of ESOP’s for colleague nearing vesting milestones, along with helping them find new opportunities.
The management has offered two-month salary as a severance package to the laid off employees.
Bengaluru-based Treebo was founded by Kadam Jeet Jain, Rahul Chaudhary, Sidharth Gupta in June 2015. It has a wide variety of rooms providing a best-in-class service to its customers. It has about 10,000 rooms in nearly 400 hotels spread across over 85 cities operating under its brand.
In earlier news, Treebo had been delisted from MakeMyTrip, as it fosters a relationship with SoftBank-backed OYO. OYO is a significant competitor of Treebo in this space, it has also expanded to international markets and is looking to venture into the wedding industry as well.
Treebo is looking to give a competition to OYO, as it looking to expand its services by acquiring event discovery platform Events High.