According to sources in the organization, the company is doing this layoff to improve its margins as part of its efforts to achieve profitability.
The company conducted two restructuring exercises in September 2022 ahead of its IPO, where it announced new appointments to centralize and integrate operations across all verticals.
In July 2022, a massive restructuring plan was announced where it laid off around 1,000 employees while shutting down three of its businesses – used cars, cloud kitchens and grocery delivery – to focus on the EV business . While it laid off about 1,000 employees from other business areas, it planned to hire about 800 employees for its EV business.
The development comes seven months after Ola Electric’s subsidiary Ola Consumer planned to initiate a restructuring process that will affect at least 10 per cent of its employees. Meanwhile, Hemant Bakshi, CEO of Ola Cabs, the ride-hailing arm of ANI Technologies, also left the company.
Also read: Ola Cabs CEO Hemant Bakshi resigns, company plans to lay off 10% of employees as part of restructuring process
Ola Electric announced its Q2 FY25 results earlier this month. The company reported a 38.5% YoY growth in its revenue to ₹1,240 crore due to increase in deliveries – which increased by 73.6% to 98,619 units from 56,813 units in Q2FY20.
(Ola Electric could not be reached for comments, story will be updated with responses)
(tags to translate)Ola Electric
