NEW DELHI: Ride unicorn Ola is likely to lay off over 500 employees to cut costs. Ola Is facing a challenging funding environment and with an aim to cut costs the company may lay off over 500 of its employees. The layoffs are taking place in various departments of ola.
In international markets, this unicorn company has stopped making investments in Australia, the United Kingdom, and New Zealand. Recently, Ola has closed its user car business Ola Cars, and fast trade business Ola Dash to focus on its electric vehicle manufacturing business.
The Bengaluru-based startup took this move after shutting down its used car business Ola dash – a 10-minute daily grocery delivery business and ola car. The company has restructured its technology, infrastructure, and its capabilities of expanding its electric sales and networks.
By 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.
“Key managers were asked to draw up a list of people from their respective teams last week who can be let go,” said an anonymous source.
Currently, Ola has around 5,000 employees, and the company is trying to reduce its workforce. Around 1100 people are working in the core of the company and generate at least Rs150 crores in revenue each month, generating Rs 50 crores as profit.
Meanwhile, the company’s cab services are also going well and generate a lot of money every month for the company. but the majority of experts in the industry and people think the company’s electric vehicle subsidiary is going to be most successful in the future.
The company’s riding business is already doing well and has been delivering its “highest ever GMV” (gross merchandise value) on month with profits and its Electric vehicle (EV) business is India’s largest EV firm already.
In June, Ola’s electric business crossed the Rs 500 crore revenue in the first two months.