Hello and welcome Let's return to our usual morning look at private companies, public markets and intermediate gray space.
After a brief pause, we return to the issue of unicorn layoffs. While it is encouraging that several companies move forward with the growth of ARR driven by efficient spending, not all companies have adopted a similar approach. As we have seen in the last six months, many companies that made large checks ended up spending too much and are now reducing staff and other costs.
Today I want to see the latest news from OYO, which is overcoming a withdrawal to reduce losses. And I am following the recent notes of venture capitalist Bill Gurley about how much money a company should raise before an IPO without generating market speculation that it is a bonfire of money, setting fire to the spot.
OYO, the soft hotel startup backed by SoftBank, is releasing personnel, reducing capacity and abandoning some locations altogether. The firm, famous for its hyper growth and aggressive capital increases, will cut 1,450 employees, including 1,000 in their country of origin, India. In fact, the company is leaving several hundred cities in India and has cut tens of thousands of rooms from its rolls, according to reports.