Softbank-backed Ola plans to cut around 200 jobs across its teams in the next few days to reduce its workforce by more than 1,200 this year.
The company has launched a new wave of layoffs that will affect its engineering teams in its food and beverage businesses. An Ola spokesperson said fewer than 200 jobs will be affected by the layoffs, which is about 10% of the company’s engineering team.
The Bengaluru-headquartered startup, valued at more than $7 billion and backed by Temasek and Warburg Pincus, has tried a number of businesses in recent years, including food delivery and fast-paced commerce, but has shifted most of its focus to Ola Electric, an independent startup that technically makes electric scooters.
Ola said in a statement that it currently employs around 2,000 individuals and aims to increase its engineering talent pool to 5,000 in the next 18 months.
“In light of these efforts, the company is undergoing a restructuring exercise to centralize operations and reduce redundancy and build a strong lateral structure that consolidates related roles and functions,” a startup spokesperson said in a statement.
The startup’s founder, who has been tight-lipped about the marquee ride-hailing service in a year and through his company bought sibling fintech startup Avail Finance in March, is struggling to grow sales of its electric vehicles, according to government data.
Monday’s layoffs add to a growing list of job cuts across India’s startup ecosystem this year, with more than 10,000 roles eliminated this year in part due to the market downturn.
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