NEW DELHI: Ride unicorn company Ola has now started laying off the procedure around 500 employees from its powerful workforce of 1,100 people to cut costs amid dealing with funding challenges.
The Soft Bank-vacked company has also deferred appraisals as it aims at “leaner and consolidated teams” to keep “string profitability intact”.
In an internal communication platform Balachandra N, chief of HR said, “we understand the anxiousness around Driven (Ola’s appraisal programme).
“As you would know by now, we are working on the restructuring of some of our businesses and will follow it up with Driven,” read the internal communication.
The layoff move came as Shikhar Sood, Ola’s talent acquisition head, and in charge of talent acquisition of the whole ola, group resigned. His resignation came in the midst where other top executives also resigned.
As per the report by CNBC, other former executives said that “product complaints, unit closures and ‘act fast, think later’ culture has led to recent Ola troubles”. Earlier this week, Yashwant Kumar, Senior Director and Business Head for Charging Networks at the company, also decided to move on.
The Bengaluru-based startup took this move after shutting down its used car business Ola dash 10-minute daily grocery delivery business, ola cafe and ola car. The company has restructured its technology, infrastructure, and its capabilities of expanding its electric sales and networks. Cutting cash in heavy-run business-like ola dash & reducing the workforce will give the company more scope in operation and more profit if the company tries to go for a public listing, the publication quotes another source as saying. The company, right now, is majorly invested in Ola electric and is looking to stay primarily in this sector in the country.