The Bengaluru-based startup Ola is expected to lay off 400–500 workers in an effort to reduce expenses. The employment cutbacks are being implemented across departments as rising worries about the funding climate and a delay in listing plans of the firm.
Days prior, the firm chose to close Ola Cars, the used car company, and Ola Dash, the 10-minute grocery delivery service that was introduced by the mobility platform. In order to grow the Ola Electric sales and service network, the business has repurposed its infrastructure, technology, and Ola Cars capabilities.
The firm shut down Ola Cars eight months after it was launched in order to focus on its electric two-wheeler and automobile verticals. The companies Ola Cafe, Food Panda, Ola Foods, and Ola Dash have all been cancelled so far.
‘Key managers were asked to draw up a list of people from their respective teams last week who can be let go’ an anonymous source with knowledge of the matter said. Currently, Ola has 5,000 employees working for it. The business also intends to expand in a way that does not jeopardise its high profitability while concentrating on smaller and more concentrated teams and capabilities.
The company’s ride-hailing division is producing ‘highest ever GMV’ (gross merchandise value) coupled with profits month after month, and its electric vehicle (EV) division has quickly grown to become India’s largest EV company. In May 2020, Ola cut off over 1,400 workers from its ride-hailing, financial services, and food businesses as a result of the disruptions brought on by the coronavirus pandemic, which led sales to drop by 95%.
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