Ola to lay off 1,000 employees while actively hiring for electric vehicle business

Urban Mobility Firm Ola is in the process of laying off about 1,000 employees despite being recruiting electric vehicle businesscompany insiders and recruitment agencies said.

This was reported by ET on July 6. that the company began to distribute pink slips and that it has not yet been formalized annual assessments for many of its employees.

The number of cuts was estimated at around 400-500, but sources say the final figure could be as high as 1,000.

The entire restructuring work, which is expected to continue for a few more weeks, is to focus more on its electric vehicle business, where the company is pursuing “aggressive” recruiting, according to executives involved in the hiring process. This process continues vertically, including mobility, hyperlocality, fintech and the used car business.

An executive told ET that those who are being fired have been asked to resign voluntarily.

“The company is postponing the evaluation process for several employees that the company wants to lay off so that they can retire,” an Ola employee told ET.

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A source close to the events said Ola is hiring four people for every layoff as the Bangalore-based company plans to make lithium-ion battery cells and an electric car.

“Ola plans to hire about 800 people just for cars and additionally for the development of cellular communications…” the person said. “Even if they let people go, there are more of them. This is a repurposing process for the company, not a cost cutting process…” said a person with knowledge of the matter.

Ola did not respond to ET’s detailed inquiries about the restructuring plan.

This was reported by ET on June 25. that Ola is closing its Ola Dash quick commerce business and Ola Cars used car business, signaling the end of its super-app ambitions.

ET also reported on February 28 that Ola is unlikely to realize its super-app ambitions due to multiple obstacles, including financial and technological challenges.

On July 18, the company said it would invest about
$500 million for upcoming battery research and a development center in Bangalore, which will become operational in August and will employ more than 500 engineers and PhD holders.

Ola Electric said on Thursday that it has signed an agreement with the Ministry of Heavy Industry to take advantage of the government’s Rs 18,000 crore production incentive scheme for self-produced cells at scale.

The company said it had developed India’s first in-house developed lithium-ion battery, called the 2170.

electrical plan

However, Ola is struggling to sell its first car, the Ola S1 Pro, after a fire and numerous quality control issues.
ET reported this on June 24. that the company could only sell 130-200 scooters a day.

Following the decline in sales, several sources told ET that the company is focusing on significantly improving its sales by appointing some of its top executives to manage regional sales.

Ola co-founder and CEO Bhavish Aggarwal is personally overseeing sales in South India, CMO Anshul Khandelwal is looking after the northern region, former Ola Dash CEO Vinay Bhopatkar is in charge of the west, and product chief Suwonil Chatterjee has taken over the eastern region.

“There is internal competition in Olya,” said the company executive, who did not want to be named because he is not authorized to speak to the media. “Nearly all of Ola’s employees in electrical engineering, mobility and fintech are working to improve sales performance.”

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