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SoftBank-backed Ola to hand more pink slips citing restructuring

Ola is cutting more jobs even as it cuts employment in its e-mobile business, two people familiar with the development told VCCircle.More jobs are likely to be cut at the SoftBank-backed platform as the restructuring process continues and the company “aligns its resources to fill any gaps in the organization,” according to one of the people cited above. While the duo mentioned above did not disclose the number of layoffs, they told VCCircle in an email that Ola is focused on accelerating India’s electric revolution and expanding mobile services to serve 500 million Indians.

“Purely focused on this, we rethought our priorities and decided to close our express business. In addition, Ola Cars’ infrastructure, technology and capabilities will be repurposed to expand our Ola Electric sales and service network. “We are accelerating investment and growth in new sectors such as electric vehicles, cell manufacturing and financial services,” the people added. The SoftBank-backed company has close to 1,000 employees, the Economic Times reported. According to the report, the number of those released is estimated at 400-500 people, the final figure may be around 1,000. Last month, Ola demerged its used car business Ola Cars and its express business Ola Dash at a time when rivals were pouring money into the 10-15 minute food delivery market.

So far, the company has shut down Ola Cafe, Food Panda, Ola Foods and Ola Dash. Earlier this month, VCCircle reported that Ola Electric will invest $500 million to set up a battery research and development (R&D) center in Bangalore.The company plans to break ground on the unit next month and said it plans to hire more than 500 engineers and Ph.D.s. Ola Electric launched its first electric vehicle in August last year, but it faced some negative press, especially in March when a video showing an Ola electric scooter catching fire went viral on social media. The company believes that vehicle safety is very important to Ola. In January, Ola Electric raised $200 million from Techne Private Ventures, Alpine Opportunity Fund, Edelweiss and others at a valuation of $5 billion. The funding comes months after Ola Electric raised US$200 million at a US$3 billion valuation in September last year, led by Falcon Edge, SoftBank and others.

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BusinessUpdater

An MBA in HR and Marketing from AIMS Institute (Bangalore University), He heads digital business he has a rich experience that he has garnered from his previous organisations Including leading Banks, NBFCs & Genpact India. He is a serial entrepreneur and the founder of Heavy Group of Companies.

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