ETtechOla has fired around 200 engineers across its ride-hailing and fintech businesses in a fresh round of layoffs, sources in the company said.
The layoffs constitute about 10% of its 2,000-strong engineering workforce.
Earlier, it had ambitions of building a ‘super app’ with multiple services such as cloud kitchens, used car sales, food and grocery delivery, and its core ride-hailing service.
ET reported on September 18 that the company may further cut costs, which could lead to a reduction in its engineering workforce in the ride-hailing business.
While Ola did not share the exact number of people being fired, it said it was undertaking a “restructuring exercise” and that it planned to increase its engineering headcount to 5,000 in the next 18 months as it doubles down on cell manufacturing, a four-wheeler project, and other efforts related to EVs and ride-hailing.
“In light of these efforts, the company is centralizing operations and is undertaking a restructuring exercise to minimize redundancy and build a strong lateral structure that strengthens relevant roles and functions,” Ola said in a statement.
The company said it would strengthen its engineering capabilities across vehicle, cell, battery, manufacturing, and autonomous engineering streams.
News wire Reuters was the first to report the latest round of layoffs early on Monday.
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.
Currently, the company, like every EV maker in India, imports battery cells from countries such as South Korea and China.
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.
But Ola continues to face senior-level exits.
ET reported on August 31, citing sources, that Ola Electric’s head of advanced battery engineering Ashok Saraswat resigned from the company, joining at least half a dozen senior executives who have quit over the past six months.
Ola has also postponed plans to go public in the first half of this year, possibly due to volatility in the stock market and lacklustre listings of other domestic startups.
The fresh round of layoffs comes at a time when late-stage startups are struggling to raise funds amid global macroeconomic headwinds.
The layoffs constitute about 10% of its 2,000-strong engineering workforce.
The company had laid off around 1,000 employees earlier this year as it looked to focus on its ride-hailing and EV businesses.
Earlier, it had ambitions of building a ‘super app’ with multiple services such as cloud kitchens, used car sales, food and grocery delivery, and its core ride-hailing service.
ET reported on September 18 that the company may further cut costs, which could lead to a reduction in its engineering workforce in the ride-hailing business.
While Ola did not share the exact number of people being fired, it said it was undertaking a “restructuring exercise” and that it planned to increase its engineering headcount to 5,000 in the next 18 months as it doubles down on cell manufacturing, a four-wheeler project, and other efforts related to EVs and ride-hailing.
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“In light of these efforts, the company is centralizing operations and is undertaking a restructuring exercise to minimize redundancy and build a strong lateral structure that strengthens relevant roles and functions,” Ola said in a statement.
The company said it would strengthen its engineering capabilities across vehicle, cell, battery, manufacturing, and autonomous engineering streams.
News wire Reuters was the first to report the latest round of layoffs early on Monday.
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.
Currently, the company, like every EV maker in India, imports battery cells from countries such as South Korea and China.
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.
But Ola continues to face senior-level exits.
ET reported on August 31, citing sources, that Ola Electric’s head of advanced battery engineering Ashok Saraswat resigned from the company, joining at least half a dozen senior executives who have quit over the past six months.
Ola has also postponed plans to go public in the first half of this year, possibly due to volatility in the stock market and lacklustre listings of other domestic startups.
The fresh round of layoffs comes at a time when late-stage startups are struggling to raise funds amid global macroeconomic headwinds.
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