Ola likely to lay off up to 500 employees in cost-cutting exercise
Ola, which has delayed its IPO plans, has also reportedly shopped its global investment plans to further expand overseas.
Ola news updates: As Bhavish Aggarwal focuses his energies towards Ola Electric, the ride-hailing platform Ola is planning to lay off up to 500 employees across departments as it aims to cut cost and streamline operations amid the ongoing funding winter.
According to reliable sources, SoftBank-backed Ola has asked senior executives to find employees in their teams on performance basis who can be asked to go.
The company is reportedly looking at "leaner and consolidated teams" to keep its "strong profitability intact".
Ola, which has delayed its IPO plans, has also reportedly shopped its global investment plans to further expand overseas.
The company currently has nearly 1,100 employees in its core ride-hailing business and directly competes with Uber.
Last month, Ola shut down its used vehicle business Ola Cars as well as Ola Dash, its quick-commerce business.
The company shut Ola Cars within one years of its launch, as it focuses on its electric two-wheeler and electric car verticals.
Ola has so far shut down Ola Cafe, food panda, Ola Foods, and now Ola Dash.
"Ola has reassessed its priorities and decided to shut down Ola Dash- its quick commerce business. Ola will also be reorienting its Ola Cars business to focus more on strengthening the go-to-market strategy for Ola Electric," the company had said in a statement.
It added that Ola Cars' infra, technology and capabilities will be "repurposed towards growing Ola Electric's sales and service network".
Ola now aims to invest more towards its electric car, cell manufacturing, and financial services businesses.
Ola Electric, amid several high-profile exits, is also facing scrutiny over faulty batteries in its electric two-wheelers, among other EV players like Okinawa Autotech, Pure EV, Jitendra Electric Vehicles, and Boom Motors, by the government.
Alarmed at the unabated EV fire incidents, the Centre has now sent show cause notices to EV manufacturers, warning them why a penal action should not be taken against them for delivering faulty electric two-wheelers to the public.
The EV makers have been given time till July end to respond in detail to the notices.
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