It has not been a great couple of months for Ola, and now, many sources have come out to say that the company has been forced to begin some cost cutting methods. This could end up causing the company to down size their work force by around 500 employees.
This is mainly taking place as the company has decided to put their plans of going public and being listed in the shelves for now. With funding that comes in to the Indian start-up space going down and down, the company is also finding it difficult for them to find companies and venture capital companies to inject funds in to them.
This news comes just a few days after the company announced that they will be ceasing operations on their subsidiaries Ola Dash, its quick commerce company. They also shut down their Ola Cars business a few weeks ago and transferred most of their employees to Ola Electric, a company that currently produces electric two wheelers and plans to come out with an electric car soon. The company has heavily invested in Ola Electric and is looking to be a main stay in the electric vehicles sector of the country.
According to a source close to the company, many of the top leaders of the company have been asked to come up with a list of employees in their divisions and teams to let go off.
The source went on to say that the company has currently stopped their international funding. Countries which previously saw Ola’s investments into their local markets such the United States of America, the United Kingdom, and Australia, will not be seeing the company inject funds into them for the time being.
According to a few sources, the core of the company has around 1100 people and they generate around Rs. 150 crores in revenue every month, with profits at around Rs. 50 crores. However, ceasing operations in Ola Dash, which was burning through a lot of money and letting go of employees will definitely increase the company’s profits and also allow them to focus on the core aspects of the company such as their cabbing business and their electric vehicle business.
The cabbing service of the company also continues to do well and brings in the most money for the company every month, but many people and experts feel that their electric vehicle subsidiary will be the most successful part of the business in the future.