ETtechOla has decided not to terminate the services of 200 engineers that the ride-hailing firm was earlier planning to let go, according to sources in the know.
On September 19, reports emerged that 200 engineers were being fired across its ride-hailing and fintech businesses in a fresh round of layoffs.
The layoffs would have constituted 10% of the company’s engineering workforce.
The Bengaluru-based firm had said that it would increase its engineering headcount to more than 5,000 in the next 18 months as it doubles down on cell manufacturing, a four-wheeler project and other efforts related to electric vehicles and mobility.
Ola declined to comment on ET’s queries.
Deccan Herald daily was the first to report about the company’s latest decision.
Ola had already laid off over 1,000 employees as the company shut multiple other businesses like its used car marketplace, food, and grocery delivery. The uncertainty within the firm comes at a time when late-stage startups are struggling to raise funds amid global macroeconomic headwinds.
Ola has also been struggling to sell its flagship electric scooter, the S1 Pro, after a fire incident involving one of the vehicles in March.
After a drop in sales, the company launched a sub-Rs 1 lakh scooter in August. It has since opened brick-and-mortar experience centres to boost sales.
Ola started making electric scooters last year and plans to start producing electric cars in 2024.
It also wants to manufacture its own lithium-ion battery cell that would power all its vehicles - from scooters to cars - and said last month that it would make these cells at a facility adjacent to its scooter factory in Krishnagiri (Tamil Nadu), which will also accommodate the new car manufacturing plant.
The company is calling this site an "EV Hub" that will have the capacity to produce 1 million cars, 10 million two-wheelers and 100 GWh of cells, in what it says would be the largest "EV ecosystem" in the world.
Currently, the company, like every EV maker in India, imports battery cells from countries such as South Korea and China.
On September 19, reports emerged that 200 engineers were being fired across its ride-hailing and fintech businesses in a fresh round of layoffs.
Employees were informed about the change in plan at a town hall meeting helmed by senior technology leaders at the company.
The layoffs would have constituted 10% of the company’s engineering workforce.
The Bengaluru-based firm had said that it would increase its engineering headcount to more than 5,000 in the next 18 months as it doubles down on cell manufacturing, a four-wheeler project and other efforts related to electric vehicles and mobility.
Ola declined to comment on ET’s queries.
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Deccan Herald daily was the first to report about the company’s latest decision.
Ola had already laid off over 1,000 employees as the company shut multiple other businesses like its used car marketplace, food, and grocery delivery. The uncertainty within the firm comes at a time when late-stage startups are struggling to raise funds amid global macroeconomic headwinds.
Ola has also been struggling to sell its flagship electric scooter, the S1 Pro, after a fire incident involving one of the vehicles in March.
After a drop in sales, the company launched a sub-Rs 1 lakh scooter in August. It has since opened brick-and-mortar experience centres to boost sales.
Ola started making electric scooters last year and plans to start producing electric cars in 2024.
It also wants to manufacture its own lithium-ion battery cell that would power all its vehicles - from scooters to cars - and said last month that it would make these cells at a facility adjacent to its scooter factory in Krishnagiri (Tamil Nadu), which will also accommodate the new car manufacturing plant.
The company is calling this site an "EV Hub" that will have the capacity to produce 1 million cars, 10 million two-wheelers and 100 GWh of cells, in what it says would be the largest "EV ecosystem" in the world.
Currently, the company, like every EV maker in India, imports battery cells from countries such as South Korea and China.
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