Ola Electric layoffs: Company to cut 500 jobs, Bhavish Aggarwal ‘reducing costs’
Ola Electric layoffs: Ola Electric is planning to lay off around 400-500 people across the organisation. The process will be completed in the coming weeks as the company aims to reduce operating costs ahead of the initial public offering (IPO), Economic Times reported citing people in the know. However, the final number of job cuts may change as the company is still in the process of concluding the scale of layoffs, the report added.
The impacted employees may be replaced with new hiring at a relatively cheaper cost, the report added but the headcount is set to shrink following the completion of layoffs. The report also claimed that a few teams have already finalised the number of cuts as Ola founder Bhavish Aggarwal has been pushing to reduce costs across all revenues.
Earlier the company said that it has 3,733 employees as of October 2023 and the employee attrition rate is at 47.48 per cent in FY23. Ola Cabs had laid off around 200 employee in April and the company’s CEO Hemant Bakshi and CFO Kartik Gupta had also exited the company then. This comes as Ola Electric reported a net loss of ₹267 crore on operating revenue of ₹1,243 crore for the first quarter of FY24. In FY23, the company posted a net loss of ₹1,472 crore on operating revenue of ₹2,631 crore.
