Ola Electric Lay Off: 400-500 Employees Ahead of IPO Cut Costs

Ola Electric is set to lay off approximately 400-500 employees across its organization in the coming weeks. According to sources cited by the Economic Times, this move is part of a broader strategy to reduce operating costs in preparation for its initial public offering (IPO).

Details of the Ola Electric Lay off:

The company is still finalizing the scale of the layoffs and may adjust the final number of job cuts. Some impacted employees might be replaced with new hires at lower costs, but the overall headcount is expected to decrease.

Company’s Workforce and Attrition Rate:

As of October 2023, Ola Electric had 3,733 employees. The company reported an attrition rate of 47.48% in FY23, indicating significant turnover within its workforce.

In April, Ola Cabs, a division of the same parent company, laid off around 200 employees. CEO Hemant Bakshi and CFO Kartik Gupta exited the company around the same time.

Financial Performance:

Ola Electric reported a net loss of ₹267 crore on operating revenue of ₹1,243 crore for the first quarter of FY24.

In the previous fiscal year (FY23), the company posted a net loss of ₹1,472 crore on operating revenue of ₹2,631 crore.

This financial pressure has likely contributed to the decision to reduce staffing costs before the IPO.

Cost-Cutting Measures and Ola Electric Lay Off:

Ola founder Bhavish Aggarwal has been actively pursuing cost reductions across all business areas.

This latest round of layoffs is part of these efforts to streamline operations and improve financial stability before going public.

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