Cab-hailing platform Ola is reportedly planning to trim its workforce by around 500 across various software teams of ANI Technologies, its parent company, according to a report by CNBC-TV18.
The job cuts have come in the wake of sluggish sales of Ola Electric scooter. The Bengaluru-based firm is in the middle of a major restructuring exercise. The ride hailing company laid off about 2,000 employees earlier this year amid its stock market listing plans. It had been planning IPO since last year but held its plan in view of unfavourable market conditions.
It was reported in the media in July that in a bid to significantly bring down its costs, Ola may go for job cuts across departments amid growing concerns about the funding environment and a delay in listing plans for the Bengaluru-based startup.
The company also shut down its used vehicle business Ola Cars and Ola Dash—the 10-minute grocery delivery service launched by the mobility platform. The company repurposed its infrastructure, technology and capabilities of Ola Cars toward expanding Ola Electric sales and service network.
The company closed its used car business Ola Cars eight months after its launch as it concentrated on its electric two-wheeler and car verticals. So far, Ola has folded Ola Cafe, Food Panda, Ola Foods, and Ola Dash.
Ola employs about 5,000 staff, at present. Plus, the company plans to cut its workforce to focus on leaner and consolidated teams and capabilities, and scale in a manner without compromising its strong profitability.
The company’s ride-hailing business is delivering its “highest ever GMV” (gross merchandise value) month on month along with profits, and its electric vehicle (EV) unit has already become India’s largest EV firm within months.
Ola laid off around 1,400 employees from rides, financial services and food busi-ness in May 2020 as revenues fell by 95 per cent due to the disruptions caused by the coronavirus pandemic.
