Cab-hailing platform, Ola, has laid off around 200 employees across different software teams of ANI Technologies, its parent company. These employees are said to be working on different aspects of the Ola app and the move has apparently come in the wake of declining sales of Ola Electric scooter.
The Bengaluru-based unicorn is in the middle of a major restructuring exercise. It had laid off about 2,000 employees earlier this year amid plans to go for a stock market listing. The ride hailing unicorn had been planning a public listing since last year but the plan apparently later got postponed. “We were actually very close to filing. We as a board took a call to do it later. It could be later this year or early next year because we’re actually ready. Our ride hailing business is very profitable. Our investors are very supportive on the strategy on listing,” CEO Bhavish Aggarwal told Business Today in June 2022.
Ola has also released a statement which reads, “Ola Electric, India’s largest EV company, has been increasing its focus on non-software engineering domains with a clear focus on building engineering and R&D capabilities across - vehicle, cell, battery, manufacturing and automation, autonomous engineering streams. The company currently has around 2,000 engineers and aims to increase its engineering talent pool to 5,000 over the next 18 months. In light of these efforts, the company is centralizing operations and is undertaking a restructuring exercise to minimise redundancy and build a strong lateral structure that strengthens relevant roles and functions.”
Ola’s e-scooter which was launched last year has been receiving mixed responses. Customer complaints and an incident when one of its e-scooter (an Ola S1 model) caught fire have put the Bhavish Aggarwal-led company’s electric vehicle arm in the spotlight.
Aggarwal had addressed the issue of safety at a private event in May this year and had said, “Will there be occurrences in the future, there might be”, while adding, “But our commitment is that we will make sure we analyse every issue and if there are fixes to be done we will fix them.”
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