Ola Electric to cut up to 500 jobs in cost cutting efforts

IPO-bound Ola Electric is planning to lay off 400-500 jobs as it looks to reign in operating costs ahead of the initial public offering, reported The Economic Times. As per the report, the final number may change but the leadership is currently in the process of concluding the scale of layoffs expected across the organisation.

Ola Electric Layoffs 2024

The report further mentioned that a section of the impacted employees may be replaced with new hirings at a relatively cheaper cost. A few teams have already finalised the number of cuts and Ola founder Bhavish Aggarwal has been pushing to reduce costs across all revenues.

In April too, Ola Electric had laid off around 200 employees with Ola Cab's CEO Hemant Bakshi and CFO Kartik Gupta exiting the company.

As per the firm's draft IPO papers, Ola had said that it had 3,733 employees as of October 2023, with an employee attrition rate of 47.48% in FY23. As Ola's both the units – cabs and electric vehicles are in various stages of going public, the group is planning to make them profitable.

For the first quarter of FY24, Ola Electric reported a net loss of Rs 267 crore on operating revenue of Rs 1,243 crore. In FY23, Ola Electric posted a net loss of Rs 1,472 crore on operating revenue of Rs 2,631 crore.

Also watch: Ahead of IPO, Ola electric slashes sales target: Report