Ola Electric To Lay Off Up To 500 Employees Ahead Of IPO

Ola Electric logo on phone screen

Ola Electric, the Bengaluru-based electric two-wheeler maker, is preparing to lay off almost 400 to 500 employees in the coming weeks. 

Sources said this move is part of founder Bhavish Aggarwal’s strategy to reduce operating costs before the company’s initial public offering (IPO).

While the exact number of layoffs is yet to be finalised, the reductions are expected to span various departments within the company. 

Some of the affected positions may be replaced with new hires at lower costs, ultimately leading to a reduced overall headcount. 

One source said: “The team is currently finalizing the list across different departments. Several teams have already determined the numbers, but the cuts will be organization-wide.”

A company spokesperson said: “We do not know the layoff numbers your sources are speculating.” 

According to its draft IPO filings, as of October 2023, the company employed 3,733 people, with a 47.48 percent attrition rate in FY23. 

Ola Electric plans to raise Rs 5,500 crore by selling new shares once its IPO application, pending approval from market regulator SEBI, is approved.

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The layoff news follows a recent round of cuts at Ola Cabs, Ola Electric’s ride-hailing counterpart. 

In April, around 200 employees were dismissed. 

Additionally, Ola Cabs CEO Hemant Bakshi and CFO Kartik Gupta resigned within two weeks of each other. 

Bhavish Aggarwal is reportedly closely involved with both Ola Electric and Ola Cabs, working with the ‘CXO team’ to steer the businesses towards profitability as they prepare to go public.

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