SoftBank-backed Ola has begun a cost-cutting exercise and may lay off 400-500 employees
- ByStartupStory | July 6, 2022
According to sources, mobility platform Ola is looking to dramatically reduce its expenses, which might result in the layoff of 400-500 staff due to the delay in listing plans and a difficult funding market. The layoffs came only days after Ola opted to close down Ola Dash, its rapid commerce service, and restructure its automobiles operation to focus more on developing its electric segment. The firm stated at the time that the actions are part of its aim to quicken its electrification journey and expand on its core competencies in Mobility and Financial services.
According to sources, Ola employs between 1,000 and 1,100 people in its core mobility business. “They generate Rs 100-150 crore in revenue every month, with a profit of roughly Rs 40-50 crore.” “Shedding cost burn heavy companies like Dash and decreasing human expenses would offer them greater operational runway while also demonstrating a successful firm if they wish to IPO,” the source added.
While Ola would not comment explicitly on the layoffs or the number of employees affected, it did state that its core competency remains the mobility sector as a whole, whether it be ride-hailing, automotive retail, financial sectors, or electric automobiles. Ola will also be extending its 2 Wheeler range, with plans to deliver its 2nd EV scooter geared at the mainstream market by the course of this year. According to the government’s Vahan dashboard, Ola Electric fell to fourth place in terms of electric car registrations in June 2022, just shortly after topping the list.
Ola’s founder and CEO, Bhavish Aggarwal, has also stepped aside from day-to-day administration to concentrate more on mechanical design, team development, and products, in addition to long-term strategic initiatives such as two-wheelers, vehicles, and advances in rapid commerce and worldwide expansion. GR Arun Kumar, who joined Ola only a year ago and is now the Group CFO and CFO of Ola Electric, is now in charge of the group’s day-to-day operations.
Follow Startup Story
Related Posts
