Ola fires 200 employees across verticals | The Financial Express

Ola fires 200 employees across verticals

Cab aggregator and electric two-wheeler manufacturer Ola has sacked at least 200 employees across all its verticals, according to people aware of the developments.

ola, auto sector
Ola had earlier said it was still looking to nearly double its engineering talent pool to 5,000 over the coming 12 months or so. (IE)

Cab aggregator and electric two-wheeler manufacturer Ola has sacked at least 200 employees across all its verticals, according to people aware of the developments.

The SoftBank-backed mobility company had fired over 1,000 employees last year after it shut down its quick commerce wing Ola Dash and its used car divisions.

“The recent layoffs have happened across all levels, freshers and senior, and divisions of the company, and look to be a part of the usual churn as the company looks to be leaner and tighter,” one of the people told FE.

An Ola spokesperson said in a statement: “We regularly conduct restructuring exercises to improve efficiencies and there are roles which are now redundant. We will continue making new hires in engineering and design, including senior talent in our key priority areas.”

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Ola had earlier said it was still looking to nearly double its engineering talent pool to 5,000 over the coming 12 months or so. The cost reduction exercise comes at a time when Ola Electric sold a record 25,000 scooters in December which pushed its market share to above 30%. The Bhavish Aggarwal-led startup has maintained that its ride-hailing business is “very profitable” and even the EV business would turn profitable in the “coming quarters” but did not provide specific numbers.

Several variants of the electric scooter have helped Ola Electric be the market leader in a space which sees competition from the likes of Hero MotoCorp-backed Ather, TVS’s iQube and others. Further, Ola Electric is also building electric motorcycles, a premium electric car and battery-powered commercial vehicles. It is expected to reveal more details around the bike around March.

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The robust product pipeline has also prompted the company to buy 1,500 acre land in Tamil Nadu, according to reports. This is over and above the 500 acre it already has in the state for its Ola Futurefactory. The plant currently has a capacity to manufacture 1 million cars, 10 million two-wheelers and 100 GWh (gigawatt hours) of cells per year at a single site.

The cost reduction exercise comes at a time when Ola is preparing to file for an IPO later this year, a plan already deferred by a few months due to “unfavourable market conditions”.

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First published on: 14-01-2023 at 03:20 IST