Ride-hailing platform Ola is likely to lay off up to 500 employees across departments as it aims to cut costs amid a challenging funding environment and a delay in listing plans.
According to a report by news agency IANS, senior executives at the SoftBank-backed company have been tasked with identifying team members who can be asked to leave based on performance.
The company is reportedly aiming at "leaner and consolidated teams" to keep its "strong profitability intact."
Ola presently employs close to 1,100 people in its ride-hailing operation.
The company had shut down its used vehicle business Ola Cars as well as its quick-commerce business, Ola Dash, last month.
Ola Cars was shut down within one year of its launch, as the company shifted focus on its electric two-wheeler and car verticals.
The company has so far shut down Ola Cafe, foodpanda, Ola Foods, Ola Dash, and Ola Cars.
"Ola has reassessed its priorities and decided to shut down Ola Dash - its quick commerce business. Ola will also be reorienting its Ola Cars business to focus more on strengthening the go-to-market strategy for Ola Electric," the company had stated.
The company stated that it aimed to invest more towards its electric vehicle, cell manufacturing, and financial services businesses.
Loopholes in EV Business
Ola is also facing a flak over faulty batteries and fire incidents in its electric vehicles among other EV players like Okinawa Autotech, Pure EV, etc.
Several incidences of electric two-wheelers catching fire have recently occurred around the country, prompting companies to recall their vehicles.
Ola electric had stated in March that it would recall 1,441 units of its electric two-wheelers, amid a rise in the incidents of their vehicles catching fire.
The company entered the EV space with a bang last year. Its electric scooters saw 1 lakh reservations in just 24 hours of opening of pre-launch bookings. However, cracks began to show up as delays in deliveries and missing features became synonymous with the brand.
(With inputs from IANS.)
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