3rd June 2024- Ola Electric, led by founder Bhavish Aggarwal, is gearing up for its upcoming initial public offering (IPO) by focusing on reducing operating costs. Reports suggest that the company is planning to trim its workforce by 400-500 employees, primarily to streamline operations and optimize expenditure. While the exact number of layoffs is yet to be finalized, the leadership team is actively evaluating the scale of reductions across various verticals. It’s anticipated that some of the affected positions may be replaced with new hires at a lower cost, but the overall headcount is expected to decrease.
This restructuring follows previous rounds of layoffs within the organization, signaling a concerted effort to align resources with strategic objectives. Ola Electric had previously laid off 200 employees across its various divisions in January last year, and its parent company, Ola Cabs, also reduced its workforce by around 10% in April this year.
The decision to downsize coincides with a recent downturn in demand for electric two-wheelers, impacting players across the sector. Despite this, Ola Electric has maintained its market leadership position, albeit experiencing a 35% month-on-month decline in vehicle registrations. In response, the company recently slashed prices for its latest escooter range, the S1 X, in a bid to stimulate sales.
Furthermore, Ola Electric is awaiting approval from the Securities and Exchange Board of India (SEBI) for its INR 7,250 Cr IPO, which is expected to debut later this year. The IPO comprises a fresh issue of INR 5,500 Cr and an offer-for-sale (OFS) component of INR 1,750 Cr.
Conclusion
Ola Electric’s workforce reduction reflects a strategic move to enhance operational efficiency and align resources with market dynamics ahead of its IPO debut in the near future.
Source:Link
