Cab aggregator Ola has laid off employees from some of its verticals as part of a restructuring exercise, according to media reports. They said the Bengaluru-based company has given the pink slip to around 200 employees from its tech and product teams, and engineering roles have been impacted the most.
“We regularly conduct restructuring exercises to improve efficiencies, and there are roles that are now redundant. We will continue making new hires in engineering and design including senior talent in our key priority areas,” according to an Ola spokesperson.
According to a report by Inc42 quoting sources, the laid-off employees are from Ola Cabs, Ola Electric, and Ola Financial Services verticals.
The spokesperson said, “It is a business restructuring and rationalisation (exercise). There will be new hires in focus teams.”
The spokesperson added that the company may ramp up hiring in several verticals including engineering and design.
In September, Ola had said the company had around 2,000 engineers and aims to increase its engineering talent pool to 5,000 over the next 18 months. “The company is centralising operations and is undertaking a restructuring exercise to minimise redundancy and build a strong lateral structure that strengthens relevant roles and functions.”
According to regulatory filings, Ola reported a 65 per cent decline in revenue to Rs 689.61 crore in FY21. The company reported its first-ever operating profit (profit before finance cost, depreciation, amortisation, and tax or EBITDA) at Rs 89.82 crore on a standalone basis. It had registered a loss of Rs 610.18 crore in the previous financial year.
This week, Ola also shut down its neobanking firm Avail Finance, which it had acquired in March 2022. According to an ET report, Ola plans to merge Avail Finance with its subsidiary Ola Money and has stopped lending via the neobanking platform.
E-commerce company Amazon has also started laying off around employees in India as part of its biggest retrenchment exercise across the globe, according to reports. Amazon has sent an email to concerned employees apprising them that they have been laid off.
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