Ola, the ride-hailing company, is gearing up to downsize. It plans to cut about 15 to 20 per cent of its approx. 6000 strong staff in the next six months.
The Company, which is worth about $6 billion, intends to go public in the next couple of years. Before filing for IPO, it wishes to be seen as a profitable company. Therefore, as a cost-cutting measure, and also to focus more on growth and profitability, it has come up with a plan to restructure. Slashing jobs is just one part of the plan. Its 1500 strong operations team is expected to take the maximum brunt of this move. In the last year and a half, the engineering department of Ola, which had about 800 members, has reduced to about 200.
The company’s investors have also been pressurising it to improve profits, which has not been easy given the fact that the cab business in the country has kind of stagnated. The only option to earn better profits is to reduce the size of its workforce. It was revealed that after eliminating costs incurred on salaries and technology, the Company began to break even on each cab ride.
There are approx. 5,800 to 6000 employees working for the Ola Group, which includes Ola Electric Mobility and Ola Financial Services. While more than 350 to 400 of these may be rendered jobless, around 8 to10 per cent of them are likely to be reorganised.