On-demand mobility company Ola has hinted that it could lay off approximately 1,000 employees to compensate for the same in Ola Electric. Divisions like transportation, hyperlocal, fintech, and Ola’s used vehicle business have reportedly seen inclusion in the firing process, as per sources citing personnel records.
As per officials involved in the recruiting cycle, the overall reorganization effort, which is anticipated to go for another few weeks, would be to concentrate much more on the e – mobility division, where it is recruiting “vigorously”. However, sources close to the firm claim that just 500 people, not a thousand, may be affected by these layoffs. The cycle has indeed been underway in a variety of industries, including those that deal with used automobiles, transportation, hyperlocal, and fintech.
In an interview earlier, an Ola employee had earlier told the Economic Times, ““The company is delaying the appraisal process of several employees who the company wants to fire–so that they resign.”
Another source told the ET, ““Ola is planning to hire about 800 people for cars alone and additionally for cell development. Even as they are letting go of people, there are more people coming in. It is a repurposing process for the company rather than a cost-cutting process…”
Ola has put the brakes on its international investment aspirations in addition to delaying its IPO preparations. The corporation plans to increase investments in its financial products, lithium battery manufacturing, and electric vehicle industries. Ola recently closed Ola Dash, a rapid commerce company, and Ola Cars, buy an old vehicle dealership, putting a stop to its plans to become a super application .Less than a year after its debut, it was closed down as the corporation switched its attention to the electrical 2-wheelers and automotive sectors.
Along with other EV companies like Okinawa Autotech and Pure EV, Ola is under criticism for the defective batteries cells and catastrophic events involving fire in its EVs. Recently, there have been several instances of electrical 2-wheelers catching fire across the nation, leading manufacturers to withdraw their products.