Ride Hailing company Ola fires 200 employees in a major restructuring
Ride-hailing platform, Ola, has recently let go o around 200 employees across different software verticals of ANI Technologies which is the parent company of Ola. These employees were working on different software needs of the Ola app and the decision has been take has due to declining sales of Ola Electric scooter.
The company is currently conducting a major restructuring exercise and streamlining the business.Ola has been planning an IP since last year but the plans got postponed due to various reasons. “We were actually very close to filing. We as a board took a call to do it later. It could be later this year or early next year because we’re actually ready. Our ride-hailing business is very profitable. Our investors are very supportive on the strategy on listing,” CEO Bhavish Aggarwal told Business Today in June 2022.
Ola has also made an official statement which said, “Ola Electric, India’s largest EV company, has been increasing its focus on non-software engineering domains with a clear focus on building engineering and R&D capabilities across - vehicle, cell, battery, manufacturing and automation, autonomous engineering streams. The company currently has around 2,000 engineers and aims to increase its engineering talent pool to 5,000 over the next 18 months. In light of these efforts, the company is centralizing operations and is undertaking a restructuring exercise to minimise redundancy and build a strong lateral structure that strengthens relevant roles and functions.”
Ola’s e-scooter was launched last year has not received a great market response so far. With lot of complaints and an incident that took place with the Ola S1 model, have put the company’s electric vehicle division in the spotlight.