Ride-sharing giant Ola, which has diversified significantly since its launch, is staring down the barrel of adversity as the global economic downturn rears its ugly head. In response, the company is laying off nearly 1,000 employees, reports Economic period citing internal company sources and recruitment agencies involved in the discussions.
It was earlier reported that number would be around 400-500. The company had also suspended its employee assessment program, internally called “Driven”.
The layoffs would be part of a restructuring exercise, which is expected to last a few more weeks. The company will lay off staff based on performance across all verticals of its mobility, hyper-local, fintech and used car businesses. Those targeted by the layoffs were asked to resign voluntarily, and the company also reportedly suspended the evaluation of targeted employees to encourage their resignation.
The move is attributed to Ola’s focus on the electric vehicle sector, for which it is hiring “aggressively”. The company plans to manufacture lithium-ion cells and an electric car, for which it will hire four people for every employee laid off. “Ola plans to hire around 800 people for the cars alone and additionally for cell development…Even though they are letting people go, there are more people coming in. It’s a redirection process for business rather than a cost-cutting process,” one employee said in a statement.
On the contrary, certain measures taken indicate intentions to reduce costs. The company recently shrunk its cloud kitchen branch to integrate with Ola Dash.
Ola had earlier announced that it was investing $500 million in a new battery R&D center in Bengaluru. The center should start its activities in August, with a team of 500 engineers and doctors.
Navigation has not been smooth on the EV front. As founder Bhavish Agrawal ambitiously pursued his electric vehicle dream, the company’s first vehicle, the Ola S1 Pro, recorded sales of less than 130-200 per day, mainly due to fire incident reports and quality control complaints from across the country.
Ola reportedly lays off 1,000 employees amid focus on electric vehicle business
Source link Ola reportedly lays off 1,000 employees amid focus on electric vehicle business