Bhavish Aggarwal, the founder, is concentrating more on controlling operating expenses in advance of an IPO. The ultimate number of layoffs at Ola Electric may yet alter because the leadership team is presently determining the scale of the reductions, which are expected to touch numerous verticals. Some of the affected employees may be replaced by new hires at a lesser cost, but the overall headcount is projected to decrease.
Ola Electric, an electric car manufacturer, is apparently seeking to reduce its employment by 400-500 personnel to optimize operations.
According to various sources familiar with the subject, founder Bhavish Aggarwal is focusing on reducing operating costs ahead of an initial public offering.
The article further stated that the final number of layoffs at Bengaluru-based Ola Electric may change as the leadership team determines the scope of the reductions, which are expected to affect multiple sectors. Although some of the affected employees may be replaced by new hires at a cheaper cost, the overall headcount is projected to decrease.
“Inside, they (the Ola Electric team) are completing the list across multiple teams. Three to four teams have already decided on the numbers, but the layoffs will be made across the organization,” a source told ET. According to the source, Aggarwal has continually pushed to minimize costs across all avenues.
Prior to the last reorganization exercise, the business laid off staff in two rounds over the last two years. In January of last year, it lay off 200 staff from Ola Cabs, Ola Electric, and Ola Financial Services.
In April of this year, Inc42 reported that ride-hailing giant Ola Cabs let off roughly 10% of its workforce, or over 200 individuals.
Furthermore, the company is awaiting approval from the market regulator Securities and Exchange Board of India (SEBI) for an INR 7,250 crore initial public offering (IPO). The IPO will include a fresh issue of INR 5,500 crore and an offer-for-sale (OFS) component of INR 1,750 crore.
The EV company intends to make its market debut later this year.
The employment losses correspond with a recent drop in demand for electric two-wheelers, which has impacted most firms in the market.
Despite a 35% month-on-month drop in vehicle registrations to 33,062 units, Ola Electric maintained its dominance, having registered its highest-ever monthly registrations of almost 50,000 in March. In an effort to increase sales, the business dropped the costs of its latest escooter line, the S1 X, last month, with prices now ranging from INR 69,999 to INR 99,999, down from the prior range of INR 79,999 to INR 1,09,999.
