Cab aggregator Ola is in the process of laying off some of its employees to cut down losses. The layoffs include senior managers as well as mid-level employees. As per a report in Entrackr, the company is in the process of laying off 20 percent of its employees. The layoffs are part of the company’s measures to reduce costs ahead of its public.
However, an Ola spokesperson told the news site that only 5-7 per cent of its strength of 4,500 employees would be impacted by this move. This would put the number of employees who are being handed pink slips a little over 300.
The company also stated that the number of employees impacted would also include ones who are being reallocated within the group companies. Also, there were news in the past that the company is planning to set up its governance and compliance processes to prepare itself going public in the coming 18-20 months.
As per a spokesperson to the news site, “With a view to become more nimble and have a sharper focus on growth and profitability, we are redesigning the organisation to build a structure that strengthens and leverages our local and global scale and enables faster decision making across all of Ola’s group companies.”
According to reports, Ola had reduced its losses by nearly 56 per cent to Rs 1,160.27 crore in FY19 from Rs 2,676.70 crore in FY18. Its standalone revenue has also increased by 15.8 per cent y-o-y in FY19 at Rs 2,155.21 crore from Rs 1,860.61 crore in FY18.
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