In a bid to control costs and increase efficiency, Ola, the ride-hailing company may sack at least 400 people. This downsizing is reportedly being resorted to considering the tight funding environment.
This move comes not long after the ride-hailing company shut down Ola Cars, the used cars business, and Ola Dash, its quick commerce business so that it could focus on the electric vehicles business alone.
According to Money Control, the senior managers of the Company have been asked to draw up a list of employees who can be asked to leave from its presently 5,000-strong staff.
By downsizing, the Company hopes to be a more lean and agile company that appears profitable when it comes to listing.
About two years ago, in 2020, Ola had laid off around 1,400 employees from its food, rides and financial services verticals in response to dipping revenues amidst the pandemic-imposed mobility restrictions.
The demand for electric vehicles of Ola fell slightly recently following certain fire incidents affecting two-wheeler electric vehicles, which made the safety of the vehicles doubtful. Naturally, the registrations of EVs was adversely affected.
Ola Electric is reportedly all set to launch its electric car, whose design was recently unveiled.
Meanwhile, the state government of Delhi has issued a notification that all three and four-wheeler passenger vehicles as well as two-, three- and four-wheeler commercial vehicles should be converted to electric vehicles by April 2030.
A Delhi Motor Vehicle Aggregator Scheme has been issued to this effect and will be applicable to all aggregators including Ola and Uber.